Question

What is GDRs and ADRs

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Answer 1

GDR means global depository receipt .

ADR means American depository receipt.

Answer 2

GDR - A Global depository receipt is when local currency shares of a company are sent to a depository bank and the depository bank issues depository receipts against these shares in US dollar denominations.

These can be traded freely in any foreign stock exchange.

ADR - An American depository receipt is the same as a GDR but can only be issued to American citizens and can only be bought, sold and listed in the American Stock Market.