Global Depositary Receipt - GDR


DEFINITION of '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 shares, but are offered for sale globally through the various bank branches.

2. A financial instrument used by private markets to raise capital denominated in either U.S. dollars or euros.

BREAKING DOWN 'Global Depositary Receipt - GDR'

1. A GDR is very similar to an American Depositary Receipt.

2. These instruments are called EDRs when private markets are attempting to obtain euros.

  1. Depositary Receipt

    A negotiable financial instrument issued by a bank to represent ...
  2. Safekeeping Certificate

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  3. American Depositary Receipt - ADR

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  4. American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company ...
  5. International Depository Receipt ...

    A negotiable certificate issued by a bank representing ownership ...
  6. Forex - FX

    The market in which currencies are traded. The forex market is ...
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  1. What are the differences between global depositary receipts (GDRs) and American depositary ...

    A global depositary receipt (GDR) is a bank certificate issued in multiple countries for shares in a foreign company. The ... Read Full Answer >>
  2. What are the benefits of global depositary receipts (GDRs) to investors?

    Benefits that investing in global depositary receipts (GDRs) can provide to investors include the opportunity to access investment ... Read Full Answer >>
  3. Why would a company choose to use global depositary receipts (GDRs) for financing?

    A company may choose to use global depositary receipts, or GDRs, for financing to access more potential investors, with a ... Read Full Answer >>
  4. How are American Depository Receipts (ADRs) priced?

    The price of an American depositary receipt (ADR) is determined by the bank or other financial institution that issues it. ... Read Full Answer >>
  5. 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 >>
  6. What is the difference between a greenfield investment and a regular investment?

    A greenfield investment is a particular type of investment where an international company begins a new operation in a foreign ... Read Full Answer >>

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