Depository Receipts

A depository receipt (DR) is another type of equity security
This is a negotiable receipt or certificate issued by a depository bank representing ownership of a specified number of shares in a foreign company.
DRs allow investors to hold shares in equity securities in other countries.
DRs bought and sold in the US are called ADRs
They are used by non US companies to gain access to the US equity markets.

DRs permit the trading of foreign stocks in the US while avoiding problems associated with trading of foreign securities (currency conversion, security transfer).

GDRs (Global Depository Receipts) are similar to ADRs except they denote ownership of the shares of foreign company that are traded in 2 or more markets.

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