GDR

A global depositary receipt (GDR) is a certificate issued by a bank in one country for certain shares which it holds in trust but are traded an exchange in another country. Global depositary receipts can be bought and sold like domestic shares and entitle the bearer to benefits such as dividends. However, they are usually offered by less established companies and are therefore a more risky investment. GDRs are used by companies to raise money in more than one market and enable investors to diversify across regions without currency conversion or other complications of overseas trading.

This definition is for general information purposes only