ADR vs GDR
π’ ADR (American Depositary Receipt):
ππ» Issued by U.S. banks, ADRs represent shares in a foreign company and trade on U.S. stock exchanges like the NYSE or NASDAQ.
ππ» They are denominated in U.S. dollars, making it easier for American investors to invest in foreign companies.
ππ» Investors earn dividends and can benefit from stock price changes, similar to holding the foreign shares directly.
π’ GDR (Global Depositary Receipt):
ππ» GDRs represent shares in a foreign company and are typically issued by international banks in more than one market (often in Europe and Asia).
ππ» They allow companies to access global investors and are usually denominated in major currencies like the USD or Euro.
ππ» GDRs are traded on international exchanges, such as the London Stock Exchange or Luxembourg Stock Exchange.
β Key Difference: ADRs are specific to the U.S. market, while GDRs target multiple global markets. Both offer a way for investors to hold foreign stocks through a local intermediary, simplifying cross-border investments.
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Disclaimer: The above data should not be considered as a Buy or Sell recommendation. The analysis has been done for educational and learning purpose only.
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