Investopedia

Continue to Site »

International Depository Receipt - IDR

Filed Under » , ,
Dictionary Says

Definition of 'International Depository Receipt - IDR'

A negotiable certificate issued by a bank representing ownership of stock of a foreign company held by the bank in trust. The International Depository Receipt (IDR) is known as the American Depository Receipt (ADR) in the United States; ADRs represents stocks of quality issuers from a number of developed and emerging markets. In Europe, IDRs are known as Global Depository Receipts, and trade on the London, Luxembourg and Frankfurt exchanges.
Investopedia Says

Investopedia explains 'International Depository Receipt - IDR'

The biggest advantage of IDRs is that a foreign company does not have to comply with all the issuing requirements of the country where it will be traded, making it easier - and cheaper - for the company to trade in the overseas jurisdiction than if it were to seek a full-fledged listing.

IDRs generally represent fractional ownership of the underlying stock, with each IDR representing one, two, three or even 10 shares. The price of the IDR usually trades close to the value of the underlying shares on a currency-conversion basis, but occasional divergences may give rise to arbitrage opportunities.

Articles Of Interest

  1.

    Getting Into International Investing

    Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges.

  2. Investing Beyond Your Borders

    Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.

  3. An Introduction To Depositary Receipts

    Learn about a security that allows you to invest in a foreign company through your local exchange.

  4. ADRs: Invest Offshore Without Leaving Home

    By investing globally and trading locally, American depositary receipts offer the best of both worlds.

  5. Inspecting A Country's Debt

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.

  6. Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.

  7. Emerging Markets' Environmental Commitment

    Most people think of the industrial and developed world as leaders when it comes to green technologies and environmental stewardship. After moving past their high-growth stages, many developed ...

  8. A Look Into Foreign Direct Investment Trends

    Foreign direct investments play an increasingly important role in countries as an indicator for a healthy economy in terms of economic growth and long-term capital movement.

  9. Why China's Currency Tangos With The USD

    Congress often debates pressuring China to appreciate its currency, but the yuan/dollar peg has benefits for both countries.

  10. Emerging Market ETFs For Your Retirement Accounts

    Emerging market ETFs are typically seen as riskier investments, but some of them may be able to strengthen your retirement accounts.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center