Difference Between ADR And GDR

What is ADR? (American Depository Receipts)

American Depository Receipts are referred to as ADRs. It is a type of tradable certificate that gives U.S. investors power. U.S. investors now have the ability to make investments in businesses that have been classified as non-U.S. corporations thanks to this certificate.

It is similar to a stock certificate that lists the number of stock shares. ADRs, as the term is known in the U.S. stock market, often trade in dollars, and U.S. settlement systems handle the remaining steps of the transaction.

What is GDR? (Global Depository Receipt)

A tradable financial instrument offered by a foreign bank that represents shares of a foreign corporation listed on any stock exchange outside of the US. You receive dividends in foreign currency as a holder of a GDR when you invest as a domestic investor in any firm that is based abroad (Euro or GBP).

Difference Between ADR And GDR

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