Depositary Receipt

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Dictionary Says

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.
Investopedia Says

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

  •

    American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. ...
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  • American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange. American Depositary Shares (ADSs) are issued by depository banks ...
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  • Global Depositary Receipt - GDR

    1. A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic ...
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    • International Depository Receipt - IDR

      A negotiable, bank-issued certificate representing ownership of stock securities by an investor outside the country of origin.
      Read More »

    • Unsponsored ADR

      An American depositary receipt (ADR) that is issued without the involvement of the foreign company whose stock underlies the ADR. Shareholder benefits, voting rights and other attached ...
      Read More »

    • Chinese Depositary Receipt - CDR

      A type of depositary receipt that is traded on Chinese stock exchanges. A CDR is a certificate issued by a Chinese bank that represents a pool of foreign equity that is traded on local ...
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    • Safekeeping Certificate

      A document that represents ownership of a security or certificate of deposit. Safekeeping certificates are the investor's claim against the institution that is holding his or her ...
      Read More »

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