12 Difference Between GDR and ADR

1. The main difference is that ADRs are issued only by U.S. banks for foreign stocks that are traded on a U.S. exchange. 2. Acronym: ADR: American Depository Receipt GDR: Global Depository Receipt 3. Global depository receipt (GDR) is compulsory for foreign company to access in any other country’s share market for dealing in stock. But American depository receipt (ADR) is compulsory for non-US companies to trade in stock market of USA. 4. Issued In ADR: The United States GDR: Europian Countries 5. ADRs help reduce the administration and duty costs that would otherwise be levied on each transaction. They are a great way to buy shares in a foreign company while obtaining any dividends and capital gains in American dollars. 6. GDR is a negotiable instrument issued by the international depository bank, representing foreign company's stock trading globally. 7. Emerging-markets companies prefer to get GDR due to its global use for getting foreign investment for own business projects. 8. ADRs is not substitute of GDRs but GDRs can use on the place of ADRs .