Global Depositary Receipts vs. American Depositary Receipts: An Overview

Depositary receipts are certificates that represent shares in a public company but are available only in a foreign market so that foreign investors can more easily invest in the companies they represent. Issued by banks, they can be bought and sold like stock shares. U.S. investors have access to two main types of depositary receipts:

• American Depositary Receipts (ADRs) are available only in the United States. The companies they represent have partnered with a U.S. bank to make them available.
• Global Depositary Receipts (GDRs) are issued in two or more countries and may differ slightly among markets according to the relevant regulations of the country in…