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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 ?
Thus Stadt der Engel, with its sentimental self-pity and heavy allegorical aspects, "reads more like a lament for the 'good old days'of the GDR than a coming to terms with the past" (210).
This table shows companies' GDR ratios alongside their free-floating shares ratios.
The employment rate of women in GDR was highest not only in the Communist bloc but also in the world, although the Western countries doubted this claim of the GDR government.
Meanwhile, it has been also noted that along with Samsung ATIV S receiving the GDR 3 update, the Korean tech firm has also unveiled its Galaxy S3 mini's Crystal Edition, which royally flaunts its 166 Swarovski crystal elements for the fashion-conscious.
As McLellan herself admits on several occasions, the GDR 'was far from hermetically sealed' (p209)--it was influenced in all kinds of ways by global trends.
The GDRs of shareholders who do not submit their certificates on time will be sold later on the market (the cash-out).
This portrait of the churches' role in the protests then provides the jumping-off point to review the history of the Protestant church during the 40 years of the GDR.
The available sources, she concludes, contradict the widespread and simplistic perception of the GDR as a closed society and East Germans as ignorant about the world beyond their borders.
I once spoke to an official in the GDR education ministry and asked about political education which at that time was being introduced into the curricula of some English schools.
At the consumption level, it led to the substitution of GDR money with time, barter, and hard-currencies.
The department is housed in the same premises of the GDR.
The fault did not lie with the quality of early GDR engineers/ scientists, products of pre-1945 Germany's superb, if perverted, higher education under Nazi domination.