Global depositary receipt definition
Global depositary receipts (GDRs) are listed securities that represent single shares or specified numbers of shares in foreign companies. GDRs are bought and sold on stock markets like regular shares. They are very similar to American Depositary Receipts, but GDRs are traded on stock markets outside the US, like the London Stock Exchange, whereas ADRs are issued by US banks and traded on US exchanges only.
GDRs give investors access to foreign shares when they may not be able to buy the actual shares directly due to restrictions. They can be useful for companies in emerging markets, for example, as they give them access to larger and more liquid capital markets to raise funds in either US dollars or euros.