International Depository Receipt

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International Depository Receipt (IDR)

A receipt issued by a bank as evidence of ownership of one or more shares of the underlying stock of a foreign corporation that the bank holds in trust. The advantage of the IDR structure is that the corporation does not have to comply with all the issuing requirements of the foreign country where the stock is to be traded. The US version of the IDR is the American Depository Receipt (ADR).

International Depository Receipt

A certificate issued by a bank representing shares of a stock the bank holds in trust but that are traded on a foreign stock exchange. The IDR is denominated in the local currency, and entitles the bearer to any dividends and other benefits associated with the shares. IDRs can be traded like any other security. Using IDRs shields the investor from foreign exchange risk and any applicable tariffs he/she would have had to pay if he/she had bought the stock outright. It also exempts the investor from any requirements the foreign exchange might have levied. It is also known as a global depository receipt (GDR). See also: American Depository Receipt.
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Member firms can gain direct access to a pool of liquidity via the bourse and will be able to deal in UK equities, international depositary receipts, exchange traded funds and commodities, covered warrants and investment trusts.
24th January 2006 and the International Depositary Receipts representing the
securities exchange or over the counter or as American Depositary Receipts or other forms of depositary receipts, such as International Depositary Receipts, which trade in the United States, closed-end investment companies and exchange-traded funds, today announced unaudited results for the quarter and six months ended June 30, 2009.

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