Sunday, January 2, 2011


A GDR (Global Depository Receipt) is similar to an ADR, and is basically a mechanism by which companies in one country can list their stock on an exchange in a different country. The basic mechanics are that a bank or custodian holds the shares of the company in its custody and issues negotiable certificates representing title to those shares, these certificates (the GDRs) are then traded on an exchange, with the dividends and any capital gains passed through to the investor/holder of the GDR.

Synonyms: Global Depository Receipt, ADR, Depositary Receipt, Depository Receipt

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