Business and Personal Finance Dictionary

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• GLOBAL DEPOSITARY RECEIPT (GDR)
  
  In order to raise money in several markets, some corporations offer shares of their stock on markets in countries other than the one where they have their headquarters. To do it, they issue global depositary receipts in the currency of the country where the stock is trading. For example, a Mexican company might offer GDRs priced in pounds in London and in yen in Tokyo. Individual investors in the countries where the GDRs are issued buy them to diversify into international markets without having to deal with currency conversion and other complications of overseas investing. However, GDR prices are often volatile and the stocks may be thinly traded, which makes buying them riskier than buying domestic stocks.
  
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