GDR. A negotiable certificate held in the bank of one country representing a...

A security issued in one country which bundles together a number of shares in a company in another country.... more on: Global Depositary Receipt

In order to raise money in more than one market, some companies sell their share on markets in countries other than the one where they have their headquarters. To do it, they issue global depositary receipts (GDRs) in the currency of the country where the share is trading. For example, a Mexican company might offer GDRs priced in pounds in London and in yen in Tokyo. Individual investors in the countries where the GDRs are issued buy them to diversify into international markets without having to deal with currency conversion and other complications of overseas investing. However, since GDRs are frequently offered by newer or less-known companies, the prices are often volatile and the shares may be thinly traded. That makes buying GDRs riskier than buying domestic shares.