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GDR
(Global Depositary Receipt)
A GDR (Global Depositary Receipt) is similar to an ADR but can be traded on multiple global exchanges outside the company's home country. GDRs represent shares in a foreign company and are typically issued in markets like London or Luxembourg.
GDRs provide companies access to international capital markets while giving investors exposure to foreign equities without direct investment in local markets. Many emerging market companies use GDRs to attract foreign investment. Like ADRs, GDRs are denominated in hard currencies (usually USD or EUR) and pay dividends in the depositary currency, eliminating FX risk for international investors.
GDRs provide companies access to international capital markets while giving investors exposure to foreign equities without direct investment in local markets. Many emerging market companies use GDRs to attract foreign investment. Like ADRs, GDRs are denominated in hard currencies (usually USD or EUR) and pay dividends in the depositary currency, eliminating FX risk for international investors.