Question

Differentiate between ADR & GDR ( 3 Difference )​

Answer 1

Answer:

ADR)

Main purpose is to acquire resources in USA.

Main objective is to attract investments from foreign companies.

Issued by US domestic capital market.

(GDR)

Main purpose is to acquire resources in different parts of the world.

Main objective is to invest in different parts of the world.

Issued by European capital market.

Answer 2

Answer:ADRs are shares of a single foreign company issued in the U.S. GDRs are shares of a single foreign company issued in more than one country as part of a GDR program. Companies can issue depositary receipts in individual countries or they may choose to issue their shares in multiple foreign markets at once through a GDR.

Explanation: