Access to foreign companies through ADRs and GDRs, trading seamlessly on local exchanges.
American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) are tools for investing in foreign companies via local exchanges.
Banks convert foreign shares into ADRs or GDRs, allowing investors to trade them on exchanges like NSE or BSE.
ADRs are traded in the U.S., while GDRs are listed on international markets, both offering access to global stocks.
They simplify global investing, provide dividends in local currency, and follow local regulations for easier access.
While convenient, ADRs and GDRs carry risks like currency fluctuations, fees, and limited shareholder rights.
ADRs and GDRs offer global opportunities, but research and understanding are key to making smart investments.