Global Depositary Receipt


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Global Depositary Receipt

A receipt denoting ownership of foreign-based corporation stock shares which are traded in numerous capital markets around the world.

Global Depositary Receipt (GDR)

A receipt on shares of a foreign company when funds are simultaneously raised in two or more markets.

Global depositary receipt (GDR).

To raise money in more than one market, some corporations use global depositary receipts (GDRs) to sell their stock on markets in countries other than the one where they have their headquarters.

The GDRs are issued in the currency of the country where the stock is trading. For example, a Mexican company might offer GDRs priced in pounds in London and in yen in Tokyo.

Individual investors in the countries where the GDRs are issued buy them to diversify into international markets. GDRs let you do this without having to deal with currency conversion and other complications of overseas investing.

However, since GDRs are frequently offered by newer or less-known companies, the prices are often volatile and the stocks may be thinly traded. That makes buying GDRs riskier than buying domestic stocks.

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References in periodicals archive ?
NEW YORK -- Strong growth in liquidity and capital raised from American and Global Depositary Receipts is anticipated in 2007, matching or exceeding 2006's record-setting levels, according to JPMorgan's Depositary Receipts Group.
The Bank of New York Mellon's Depositary Receipt business is conducted through The Bank of New York subsidiary, which acts as depositary for more than 1,300 American and global depositary receipt programmes.
On a global scale, Deutsche serves as depositary bank for over 800 ADR and Global Depositary Receipt (GDR) programmes.
16 November 2010 - BNY Mellon (NYSE:BK) said it was picked depositary bank for Russian information technology and consulting services provider IBS Group's global depositary receipt (GDR) programme.
The Bank of New York is depositary for more than 1,230 American and global depositary receipt programs, a 64% market share, acting in partnership with leading companies from 60 countries.
The Bank currently issues depositary receipts for over 1,180 American and global depositary receipt programs from issuers in over 60 countries, representing 64 percent of all sponsored programs worldwide.
Second phase: An increase of up to 25 per cent of the current paid-up share capital through the issuance of new shares, in the form of Global Depositary Receipts, to be held by a strategic shareholder being the depository bank, and the Global Depositary Receipts to be listed on the London Stock Exchange.
Trading in MegaFon's shares and Global Depositary Receipts is commencing on the London Stock Exchange and the Moscow Stock Exchange on November 28.
International Resource News-May 23, 2011--OCI Co prices USD700m global depositary receipts programme(C)1994-2011 ENPublishing - http://www.

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