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 ?
BNY Mellon acts as depositary for more than 2,100 American and global depositary receipt programs, acting in partnership with leading companies from 67 countries.
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.
Compal) as depositary bank for its sponsored Global Depositary Receipt (GDR) program.
MPX") as depositary bank for its global depositary receipt (GDR) program.
A Depositary Receipt (DR) represents the local shares of a company and can be structured as either an American Depositary Receipt (ADR) or a Global Depositary Receipt (GDR).
NEW YORK, April 15 /PRNewswire-FirstCall/ -- The Bank of New York Mellon , the global leader in asset management and securities servicing, has been selected by JSC "Holding MRSK" as the depositary bank for its global depositary receipt (GDR) ordinary and preferred programs.
26 /PRNewswire-FirstCall/ -- The Bank of New York Mellon , the global leader in asset management and securities servicing, has been selected as the depositary bank for the Regulation S and 144A global depositary receipt programs of eleven new companies spun off from RAO Unified Energy Systems of Russia (RAO UES) in a broad restructuring and demonopolization of Russia's energy sector.
NEW YORK, July 8 /PRNewswire-FirstCall/ -- The Bank of New York Mellon, the global leader in asset management and securities servicing, has been selected by JSC Rushydro as the depositary bank for its global depositary receipt program.

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