ADR vs GDR
🟢 ADR (American Depositary Receipt):
👉🏻 Issued by U.S. banks, ADRs represent shares in a foreign company and trade on U.S. stock exchanges like the NYSE or NASDAQ.
👉🏻 They are denominated in U.S. dollars, making it easier for American investors to invest in foreign companies.
👉🏻 Investors earn dividends and can benefit from stock price changes, similar to holding the foreign shares directly.
🟢 GDR (Global Depositary Receipt):
👉🏻 GDRs represent shares in a foreign company and are typically issued by international banks in more than one market (often in Europe and Asia).
👉🏻 They allow companies to access global investors and are usually denominated in major currencies like the USD or Euro.
👉🏻 GDRs are traded on international exchanges, such as the London Stock Exchange or Luxembourg Stock Exchange.
✅ 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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