How do you define GDR? In financial markets, the acronym GDR refers to a global depository receipt. Simply put, a GDR meaning is a certificate that a depositary bank issues and sells on a stock exchange to represent shares in a foreign company.
What is the difference between ADR and GDR?
ADRs are shares of a single foreign company issued in the U.S. GDRs are shares of a single foreign company issued in more than one country as part of a GDR program. Companies can issue depositary receipts in individual countries or they may choose to issue their shares in multiple foreign markets at once through a GDR.
How do GDRs work?
The shares underlying the GDR remain on deposit with a depositary bank or custodial institution. While shares of an international company trade as domestic shares in the country where the company is located, global investors located elsewhere can invest in those shares through GDRs.
