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11th Class Business Studies Sources Of Business Finance Question Bank Sources Of Business Finance (Short)

  • question_answer
    What is the difference between GDR and ADR? Explain.

    Answer:

    Ans.     Global Depository Receipts (GDRs): GDR is an instrument issued by a company to raise funds in some foreign currency and is listed and traded on a foreign stock exchange.
    American Depository Receipts (ADRs): The depository receipts issued by the company in the USA are called American Depository Receipts.
    GDR and ADR are similar to each other except:
    (a) GDR can be issued to anyone but ADRs can be issued only to an American citizen.
    (b) GDR can be listed and traded in stock exchange of any country but ADRs can be listed and traded only in the stock exchange of USA.


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