Discussion
Depositary receipts that are traded in an international market other than the United States are referred to as
Answer: A
Correct answer: Global depositary receipts
A Global Depositary Receipt is a depositary receipt traded in international markets outside the United States, most commonly on the London or Luxembourg exchanges.
The distinction from an ADR is the market rather than the instrument: both represent shares of a foreign issuer held with a custodian, and both let an investor buy that equity in a local currency under local settlement. Indian companies raised substantial sums through GDRs in the 1990s and 2000s, when accessing foreign capital directly was harder than issuing receipts against domestic shares.
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