GDR (Global Depository Receipt)
GDR (Global Depository Receipt) is a security’s certificate that is traded on some European stock exchange and represents shares of foreign company. GDR normally is denominated in one of the main currencies. The main difference of GDR from ADR (American Depository Receipt) is that shares for ADR are deposited at American Depository while shares for GDR are deposited at European Depository (some European Bank). GDRs usually are listed in Europe (most of the times in London Stock Exchange or Frankfurt Stock Exchange).
GDR’s make investing in foreign stocks easier for Western Europe’s investors. Depository receipts makes investing in stocks of emerging markets more accessible and lowers administration costs: taxation, currency exchange costs and other. Currency risk when investing in GDRs remains.
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