1.

What is the difference between GDR and ADR? Explain.

Answer»

Global Depository Receipts (GDRs): GDR is an instrument issued by a company to raise funds in some foreign currency and is listed and traded on a foreign stock exchange. 

American Depository Receipts (ADRs): The depository receipts issued by the company in the USA are called American Depository Receipts. GDR and ADR are similar to each other except:

  • GDR can be issued to anyone but ADRs can be issued only to an American citizen. 
  • GDR can be listed and traded in stock exchange of any country but ADRs can be listed and traded only in the stock exchange of USA.


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