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depository receipt

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Financial Dictionary

Depository Receipt

A negotiable financial instrument issued by a bank to represents a foreign company's publicly traded securities. The depository receipt trades on a local stock exchange.

Investopedia Commentary

Depository receipts make it easier to buy shares in foreign companies because the shares of the company don't have to leave the home state.

When the depository bank is in the USA, the instruments are known as American Depository Receipts (ADR). European banks issue European depository receipts, and other banks issue global depository receipts (GDR).

Related Links

What Are Depository Receipts?
ADR Basics Tutorial

See also: American Depository Receipt (ADR), American Depository Share (ADS), Global Depository Receipt (GDR), International Depository Receipt (IDR), Unsponsored ADR

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