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Difference between GDR and ADR

Difference between GDR and ADR

When two people have a disagreement, there are many ways that it can be resolved. Some couples may opt for arbitration, which is a process in which an impartial third party helps the couple come to a resolution. Other couples may choose to go through mediation, which is a similar process that allows both parties to have their say. However, there is one other option for resolving disagreements known as GDR or General Dispute Resolution. Let’s take a closer look at what GDR is and how it differs from ADR.

What is GDR?

  • A GDR Global Depository Receipt is a type of security that represents ownership of shares in a foreign company. They are traded on international stock exchanges and can be bought and sold just like any other type of security.
  • The main difference between GDRs and other securities is that GDRs represent shares of a foreign company, rather than a domestic one. GDRs are popular with investors because they offer exposure to foreign markets without the added risk of direct ownership.
  • GDRs are also popular with companies because they provide a way to raise capital without having to issue new shares. As a result, GDRs have become an important part of the global financial system.

What is ADR?

ADR stands for American Depository Receipt. It is a receipt that represents a foreign-based company’s shares of stock that trade on an American stock exchange. ADRs are bought and sold just like any other stock on the exchange.

  • The shares underlying the ADRs are usually held by a U.S. bank or brokerage firm. ADRs were created to make it easier for investors to buy and sell shares of foreign companies.
  • Prior to ADRs, investors would have to buy the shares on a foreign exchange, which was often difficult and expensive. ADRs trade in U.S. dollars and can be traded on any U.S. stock exchange.
  • They are also subject to the same rules and regulations as other U.S.-listed securities. ADRs can be a good way for investors to gain exposure to foreign companies without having to deal with the complications of buying and holding shares on a foreign exchange.

Difference between GDR and ADR

GDR and ADR are both popular methods of investing in foreign companies.

  • GDRs are issued by a company that is listed on a stock exchange outside of its home country, while ADRs are issued by a company that is listed on a U.S. stock exchange.
  • GDRs can be traded on the over-the-counter market or on a major stock exchange, while ADRs can only be traded on the over-the-counter market.
  • GDRs are typically denominated in the issuing country’s currency, while ADRs are typically denominated in U.S. dollars. GDRs may be subject to withholding taxes, while ADRs are not.

Finally, GDR holders do not have voting rights, while ADR holders do have voting rights.


The Gross Domestic Product measures a country’s total output, while the Annualized Domestic Revenue measures how much revenue a company makes from its domestic sales. In other words, GDR looks at all of a company’s income streams, while ADR only looks at sales generated from within the home market. This can be important to know for businesses that want to expand their reach into new markets; if they are looking to measure their success in those new markets, they will need to use the GDR metric rather than the ADR metric.

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