Global Depository Receipts (GDR) are issued outside the United States and the issuer’s home country. Most GDRs are traded on the London or Luxembourg exchanges. Although not listed on U.S. exchanges, they are usually denominated in U.S. dollars and can be sold to U.S. institutional investors. GDRs are not subject to the capital flow restrictions imposed by governments and thus offer both the foreign firm and the investor greater opportunities. The firm usually chooses to list the GDR in a market where many investors are familiar with the firm.
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