global depository receipt (GDR) definition

global depository receipt (GDR)

Negotiable certificate issued by one country's bank against a certain number of shares held in its custody but traded on the stock exchange of another country. GDRs entitle the shareholders to all associated dividends and capital gains, and can be bought and sold like other securities. Thus they allow investors in any country to buy shares of any other country without losing the income or trading flexibility. Also called European depository receipt (EDR) or international depository receipt (IDR).

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