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GLOBAL DEPOSITORY RECEIPT (GDR) Definition & Legal Meaning

Definition & Citations:

Issued by one country’s bank as negotiable certificate. Traded on the stock exchange of another country against a certain number of shares held in its custody. Can be bought and sold like other securities. Entitles the shareholders to all associated dividends and capital gains. Without losing income or trading flexibility they allow investors in any country to buy shares of any other country. Known also as European depository receipt (EDR) or international depository receipt (IDR).


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