Global depository receipt (GDR)

UK or US investors wanting to buy shares listed in emerging market countries like Russia can face a tough time when there are government restrictions on who can own and trade them. Global depositary receipts (or GDRs) offer a solution.

Instead of trying to buy the share in its local market, the investor – typically UK or US – buys a depositary receipt, which represents the shares, instead. These are issued by investment banks, listed in the investor’s home market and traded separately from the underlying share.

Apart from easier access, the key advantages of global depositary receipts include the fact they are priced in the investor’s home currency (typically US dollars), carry lower dealing costs and pay more timely dividends, again in dollars, than the shares they represent. Whilst similar in most respects to American depositary receipts, GDRs tend to be listed in European markets like the London Stock Exchange whereas ADRs are more heavily traded in the US market.

• See Tim Bennett’s video tutorial: Depository receipts: An easy way to invest in foreign firms.

66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12