depositary receipt


depositary receipt
A certificate which gives the holder, ownership of a specified number of shares in a company that have been deposited with a financial institution
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Commonly known as 'DRs', Depositary Receipts are negotiable certificates that enable domestic investors to own shares in foreign companies. DRs are created when a broker purchases a non-UK company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank to issue DRs to the investor. Each DR represents a given number of a company's shares and can trade as freely as any other security in the UK. Several types of DRs can be listed and traded in London, including Global Depositary Receipts (GDRs) and American Depositary Receipts ( ADRs) that are denominated in US dollars. London Stock Exchange Glossary

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depositary receipt UK US noun [C] STOCK MARKET
DEPOSITORY RECEIPT(Cf. ↑depository receipt)

Financial and business terms. 2012.

Look at other dictionaries:

  • depositary receipt — A negotiable certificate certifying that a stated number of securities have been deposited with the depositary (usually a bank) issuing the certificate. The certificate confers ownership rights in the shares on the holder and allows the holder to …   Law dictionary

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  • Depositary receipt — See: American Depositary Receipt ( ADR) * * * depositary receipt UK US noun [C] STOCK MARKET ► DEPOSITORY RECEIPT(Cf. ↑depository receipt) …   Financial and business terms

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  • depositary receipt — noun a financial instrument, issued by a bank, that may be traded as if it were a share in a foreign company …   Wiktionary

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  • American Depositary Receipt — Als American Depositary Receipt (ADR, oft auch American Depository Receipt oder American Depositary Share) werden auf Dollar lautende, von US amerikanischen Depotbanken (depositary banks) in den USA ausgegebene Aktienzertifikate bzw.… …   Deutsch Wikipedia

  • European Depositary Receipt — Ein European Depositary Receipt (EDR) ist ähnlich dem American Depositary Receipt ein Hinterlegungsschein für Aktien, der auf Euro lautet[1]. Hintergründe Um Aktien die im Ausland nicht zugelassen sind in diesem handelbar zu machen, werden von… …   Deutsch Wikipedia