Global Depositary Receipt

Business, Legal & Accounting Glossary

Definition: Global Depositary Receipt


Global Depositary Receipt

Quick Summary of Global Depositary Receipt


A certificate which represents ownership of a given number of a company’s shares and which can be listed and traded independently from the underlying shares.




What is the dictionary definition of Global Depositary Receipt?

Dictionary Definition


A negotiable certificate held in the bank of one country representing a specific number of shares of a stock traded on an exchange of another country. American Depositary Receipts make it easier for individuals to invest in foreign companies, due to the widespread availability of price information, lower transaction costs, and timely dividend distributions.


Full Definition of Global Depositary Receipt


Global Depositary Receipts are negotiable certificates that prove ownership of a company’s shares.

American Depositary Receipts make it easier for individuals to invest in foreign companies, due to the widespread availability of price information, lower transaction costs, and timely dividend distributions. also called European Depositary Receipt.

They are marketed internationally, mainly to financial institutions.

GDRs allow purchasers to gain exposure to companies that are listed on foreign markets without having to purchase the shares directly in the market in which they are listed.


Examples of Global Depositary Receipt in a sentence


Hey” I said to the man as he was walking by because I needed someone to explain to me the GDR and how it functioned.

John really liked investing in other countries. He felt there was so much information out there, and undervalued assets, so he invested in some and received a GDR.

When Frank considered the GDR, he realized that the involvement in the Canadian stock market would allow the business to flourish even though the U.S. market was in trouble.


Synonyms For Global Depositary Receipt


GDR
European Depositary Receipt


Related Phrases


global shares
two-way trading
deposit
global shares
Brazil ETF
two-way trading
receipt
American Depositary Receipt


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Definition Sources


Definitions for Global Depositary Receipt are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th November, 2021 | 0 Views.