Global Depositary Receipt - GDR
Categories: Forex, International
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.
Related or Semi-related Video
Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No