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Explan breifly ADR GDR.

Global Depository Receipts (GDR's) - These are the receipts issued by depository banks against the shares of a company. For instance, the share issued by the Indian company abroad in order to raise foreign currency. These depository receipts are usually denoted in US dollars and can easily be converted into shares at any point of time. However, GDRs can be listed and traded on the stock exchange of any foreign country other than America.

American Depository Receipts (ADR's) - These are receipts of the companies based in the USA. They are usually traded like any other securities in the market; however, such trading is restricted to the American securities markets only. In addition to this, such instruments are sold only to the American citizens.

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ADR(american depository receipt)Instrruments which the non-us companies issue to the americans inorder to obtain foreign capital.Its listed in the american stock exchange or share market. One ADR=2 shares.ADRs can be converted into shares.But they do not have the right to vote i.e participate in the management of the company.US dollar denomination is used.

GDR(Global depository receipts).It is an instrument that a country's companies issue inorder to obtain foreign capital.These are traded in all those foreign share markets where they have been listed. It is is only on American and European stock exchange.GDR represents more than one share.Bearer can convert GDR into shares.Holder of a GDR do not have any right to vote in the company but shareholders have this right.GDR's are also in US denomination.dividend on GDRs=divident on shares.GDR increases the foreign exchange reserve of a country.its has moe liquidity when compared with shares.it also gains the reputaion and goodwill in the market.Hence it is a indicator of good financial position of a enterprrise

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