Global depository receipt (GDR)

Global depositary receipts (or GDRs) offer a solution for investors wanting to buy shares listed in countries where there are government restrictions on who can own and trade them.

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.

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