European Depository Receipt - EDR

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DEFINITION of 'European Depository Receipt - EDR'

A negotiable security (receipt) that is issued by a European bank, and that represents securities which trade on exchanges outside of the bank's home country. Abbreviated as "EDRs", these securities are traded on local exchanges and used by banks - and issuing companies in the U.S. and other countries - to attract investment capital from the European region.

Also known as "Euro Depository Receipts", which may or may not imply that the euro is the currency the receipt is issued upon.

INVESTOPEDIA EXPLAINS 'European Depository Receipt - EDR'

While the euro isn't the only currency that can be used to issue and trade European Depository Receipts, it is the most common because of its widespread adoption in Europe. American Depository Receipts (ADRs) are the equivalent of this type of bank receipt in the U.S.

Investors in EDRs are entitled to the same dividends and capital gains as the investors who hold common shares in the same company.

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    American depositary shares (ADS) come into play when a foreign company wants its shares to trade on a major American exchange. ... Read Full Answer >>
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    The price of an American depositary receipt (ADR) is determined by the bank or other financial institution that issues it. ... Read Full Answer >>
  3. How are American Depository Receipts (ADRs) exchanged?

    American depositary receipts (ADRs) are bought and sold on regular U.S. stock exchanges, either in the over-the-counter market ... Read Full Answer >>
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