Global Depository Receipt (GDP) - International Finance, Interdisciplinary

a global depository receipt also known
as international depository receipt is a
certificate issued by a depository bank
which purchases shares of foreign
companies and deposits it on the account
they are the global equivalent of the
original American depository receipts on
which they are based
GDRs represent ownership of an
underlying number of shares of a foreign
company and are commonly used to invest
in companies from developing or emerging
markets by investors in developed
markets prices of global depository
receipts are based on the values of
related shares but they are traded and
settled independently of the underlying
share typically one GDR is equal to ten
underlying shares but any ratio can be
used it is a negotiable instrument which
is denominated in some freely
convertible currency GDRs enable a
company the issuer to access investors
in capital markets outside of its home
country several international banks
issue GDRs such as JP Morgan Chase
Citigroup Deutsche Bank the Bank of New
York Mellon GDRs are often listed in the
Frankfurt Stock Exchange Luxembourg
Stock Exchange and the London Stock
Exchange where they are traded on the
international order book characteristics
it is an unsecured security it may be
converted into a number of shares
interest and redemption prices public
and foreign agency it is listed and
traded in the stock exchange usage if
for example an Indian company which has
issued a DRS in the American market
wishes to further extend it to other
developed and advanced countries such as
Europe then they can sell these ad ARS
to the public of Europe and the same
would be named as GDR see also
depository receipt American depository
receipt European depository receipt
Luxembourg depository receipt Indian
depository receipt cross listing
references external links Deutsche
Bank's depository receipt website global
depository receipts BNY Mellon ad ARS
Frankfurt Stock Exchange