Stock Market Glossary
GDR
Global Depositary Receipt – international counterpart to the ADR.
In brief: Global Depositary Receipt – international counterpart to the ADR.
Meaning in practice
GDRs allow issuers to offer their shares outside of the home market in multiple financial centers. Often used by companies from emerging markets that appeal to Western capital.
Context for investors and traders
For investors, the term becomes practical in the context of objectives, time horizon, risk capacity and costs. A suitable solution can differ between two people even when they consider the same product or metric.
How to use this in practice
The term becomes practical when expressed in numbers: what is the position weight, which costs apply, what loss is possible and what role does it play in the portfolio? These questions prevent an otherwise useful product from becoming too large or being used at the wrong time.
What to keep in mind
Include taxes, spreads, product structure and personal liquidity reserves in comparisons. Historical returns and a fund’s or index’s characteristics describe the past, not a promised future result.
