ADR stands for American Depository Receipts and GDR stand
for Global Depository Receipts.
where always have a query that can Indian can invest in
abroad in stock markets.. yes he can through ADR and GDR
where these both the things are traded in Market.. ADR are
just for in America and GDR can be dealed anywhere in the
world .. it works like shares of some company...and ina
recession point of view these are the best to purchase.
ADR is American Depository Receipts, it is issued by a
company in the USA .ADR are bought and sold in USA
markets.It can be listed & traded on a exchange of USA.
Whereas GDR refers to Global Depository Receipts,the local
currency shares of a company are delivered to the depository
banks.The depository banks issues depository receipts
against these shares.Such receipts denominated in US dollars.
ADR refers to the American Depository Receipt. Generally it
is issued through a participative bank(approved by SEC)
directly to American citizen without any hindrance of
various compliance to the concerned company. Necessarily the
company should a non-USA and specifically for Americans.
Whereas GDR refers to the Global Depository Receipt.A bank
certificate issued in more than one country for shares in a
foreign company. The shares are held by a foreign branch of
an international bank. The shares trade as domestic shares,
but are offered for sale globally through the various bank
ADR REFERS TO AMERICAN DEPOSITORY RECEIPTS ISSUED ONLY IN
AMERICA,THESE EQUITY SHARES R ISSUED BY COMPANIES WHO WANT
TO LIST THEIR SHARES INTO US STOCK EXCHANGE THEREFORE THESE
EQUITY SHARES R CONVERTED INTO ADR FORM AND IS GIVEN TO
CUSTODIAN BANK IN THE FOREIGN COUNTRY WHICH PROVIDES IT TO
THE INVESTORS WILLING TO HAVE HOLDING OF OTHER COMPANIES
EQUITIES IN DIFFERENT COUNTRIES WHEREAS GDR REFERS TO
GLOBAL DEPOSITORY RECEIPTS ISSUED BY LUXEMBERG STOCK
EXCHANGE AND GLOBALLY.