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International Depository Receipt

A certificate issued by a bank representing shares of a stock the bank holds in trust but that are traded on a foreign stock exchange. The IDR is denominated in the local currency, and entitles the bearer to any dividends and other benefits associated with the shares. IDRs can be traded like any other security. Using IDRs shields the investor from foreign exchange risk and any applicable tariffs he/she would have had to pay if he/she had bought the stock outright. It also exempts the investor from any requirements the foreign exchange might have levied. It is also known as a global depository receipt (GDR). See also: American Depository Receipt.


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.

References in periodicals archive ?
The role of the churches in these political changes forms the backdrop for the second section of the book, made up of six texts that focus on issues such as the development of peace groups, their role in the "non-violent revolution" of 1989, and the legacy of the experience of Christians and churches in the GDR for contemporary debates on peace, justice and the environment.
Overall, the book makes a convincing case for the centrality of economics to the demise of Communism in the GDR.
The GDR 400 is ready for use with concrete cracker or concrete pulverizer jaws, each of which minimizes dust, noise and flying debris while bolstering productivity.
The underwriter and the global coordinator for this GDR is Morgan Stanley.
Alongside selected furniture and lamps originating from the early years of the GDR, mid-century furniture from Great Britain, the former Czechoslovakia, Poland, Russia, France, Italy and the USA is also on display.
He then turned his interest to art, closely studying the painting of the GDR and travelling to visit and speak to individual artists there.
We are delighted with the response to our GDR offering on the London Stock Exchange and look forward to our future life as a publicly-traded company on an international exchange,' said Vakhtang Butskhrikidze, CEO of TBC Bank.
Some of the features included in the GDR 3 updates include:
O'Brien observes a "renewed interest in the unrealized promise of socialism in the GDR and the misguided utopianism of the RAF" in the sphere of cultural production, particularly mainstream film, that feeds into these narratives of identity building, and she marries those debates with recent critical approaches to post-Wall German film (4).
The GDR could only attempt to gain security by constantly discrediting and delegitimizing the Federal Republic, an ultimately futile goal.
EFSA has frozen all GDR trading temporarily until the new regulations come into effect.
Major risk: We could see a decline in IGSS's GDR price after the spinoff because many investors may want to take profits and convert their dividends in-specie into dividends in cash.