what impact has gdr and adr had made on share market
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ADRs (American Depositary Receipt)
An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign (i.e. non-U.S.) stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction
GDRs (Global Depositary Receipt)
Beyond the ADR, there is a second category of DR. A Global depositary receipt (GDR) represents a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. The term GDR is used throughout the globe and designates any foreign firm that trades on an exchange outside its home country.
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An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign (i.e. non-U.S.) stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction
GDRs (Global Depositary Receipt)
Beyond the ADR, there is a second category of DR. A Global depositary receipt (GDR) represents a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. The term GDR is used throughout the globe and designates any foreign firm that trades on an exchange outside its home country.
Hope it helps u
27jenny:
great explaination
tq... jenny
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