European Depository Receipt - EDR

AAA

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.

RELATED TERMS
  1. Safekeeping Certificate

    A document that represents ownership of a security or certificate ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European ...
  3. Euro

    The official currency of the European Union's (EU) member states. ...
  4. Unpaid Dividend

    A dividend that is owed to stockholders of record but has yet ...
  5. Long-Term Capital Gain Or Loss

    A gain or loss from a qualifying investment owned for longer ...
  6. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. An Introduction To Depositary Receipts
    Bonds & Fixed Income

    An Introduction To Depositary Receipts

  3. How International Tax Rates Impact Your ...
    Forex Education

    How International Tax Rates Impact Your ...

  4. Does a company's American depositary ...
    Investing

    Does a company's American depositary ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center