Global Depositary Receipt - GDR

See: ADR.

Global depositary receipts, or GDRs, are depository receipts (DR) issued in more than one country (hence the "global").

If you aren’t familiar with DRs, depository receipts are vehicles for shares in a foreign company traded only on local exchanges, and are therefore usually issued by banks rather than some giant market. Some of the most popular DRs are American (ADRs).

Global DRs, or GDRs, are sold by banks globally, but only selling locally. In other words: lots of bank branches in many countries are selling them, but each of those branches is only selling to local investors, and not selling the GDRs to those overseas.

GDRs are great for investors, since they cost less than many similar options, are relatively safe, and provide foreign diversification. Remember, though: each GDR represents a specific company (shares in that company), so do your research before hopping on the GDR train.