Depositary Receipt
Definition of 'Depositary Receipt'A negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities. The depositary receipt trades on a local stock exchange. |
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Investopedia explains 'Depositary Receipt'Depositary receipts make it easier to buy shares in foreign companies because the shares of the company don't have to leave the home state.When the depositary bank is in the U.S., the instruments are known as American Depositary Receipts (ADRs). European banks issue European depositary receipts, and other banks issue global depositary receipts (GDRs). |
Related Definitions
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Safekeeping Certificate
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Chinese Depositary Receipt - CDR
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American Depositary Receipt - ADR
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American Depositary Share - ADS
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Global Depositary Receipt - GDR
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International Depository Receipt - IDR
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Unsponsored ADR
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What parties are involved in the creation of an American depositary receipt?
An American depositary receipt (ADR) is a legal certificate issued by a recognized U.S. bank that represents a specific number of shares of a foreign corporation traded on a U.S. stock exchange. ... -
Is there a difference between ADR and ADS?
American depositary receipts (ADRs) allow foreign equities to be traded on U.S. stock exchanges; in fact, this is how the stock of most foreign companies trades in U.S. stock markets. ADRs are ... -
Why are big foreign companies considering delisting their American depositary receipts?
American depositary receipts (ADRs) were developed to give investors an easier way to invest in foreign companies. An ADR is a financial product issued by U.S. depositary banks and traded on ... -
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