Differentiate global and american depository receipts, Financial Management

Assignment Help:

What is Global Depository Receipts

American / Global Depository Receipts (ADRs/ GDRs)

Equity shares which are offered in international markets to international investors are issued in the form of Depository Receipts (DRs). If these DRs are issued for US investors in US markets, then they are termed as American Depository Receipts (ADRs).  They can be listed on New York Stock Exchange (NYSE) or National Association of Securities Dealers Automated Quotations (NASDAQ) Exchange. If they are issued for international investors to be listed on Luxemburg Stock Exchange in Europe then they are termed as Global Depository Receipts (GDRs).  What goes in the hands of investors isn't a share certificate however a 'receipt' of a share certificate which is lying with depository. The advantages of keeping the shares in the depository include: ease of transfer, less registrar, no bad deliveries and book keeping problems, etc. DRs entitle holders to get both dividend and capital gains. ADRs/ GDRs can be converted into equity shares any time as they signify equity shares anyway and reverse conversion of equity shares into ADRs/ GDRs is allowed to extent of the first conversion.

 


Related Discussions:- Differentiate global and american depository receipts

Capital asset pricing model, Cascade Water Company (CWC) currently has 30 0...

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share. CWC also has 500 000 bonds outstanding that are currently

What is an lbo, What is an LBO? What are the risks for the equity investor...

What is an LBO? What are the risks for the equity investors and what are the potential rewards? A leveraged buyout is a buy of a publicly owned corporation by a small group of

Treasury bonds or t-bonds or the long bond, Treasury bonds are the bo...

Treasury bonds are the bonds issued with maturities greater than 10 years. However, these are commonly issued with a maturity of 30 years. Like T-notes, these bon

Out of cash, Out of Cash Calculated by taking organization cash on hand...

Out of Cash Calculated by taking organization cash on hand divided by its burn rate, yielding the time period that the organization will have enough cash to cover what it wants

Show the phase of traditional approach, Q. Show the Phase of Traditional Ap...

Q. Show the Phase of Traditional Approach? Phase of Traditional Approach: According to the traditional approach the way in which the overall cost of capital and the value of th

Examine the pay-back period , Critically examine the pay-back period as a t...

Critically examine the pay-back period as a technique of approval of projects.

Net present value of the Lease, how to calculate the net present value when...

how to calculate the net present value when there is company tax rate and rate of return assume that lease is for 2 years payable at the begining of the yr, at the end of two yrs t

Leverage, evaluate the importance of leverage in financial management of a ...

evaluate the importance of leverage in financial management of a small scale company

Treasury bills, T-Bills are issued to enable the government to tide o...

T-Bills are issued to enable the government to tide over short-term liquidity requirements with maturities varying from a fortnight to a year. These instruments a

Explain about baumol model, Q. Explain about Baumol Model? Baumol Model...

Q. Explain about Baumol Model? Baumol Model: - Baumol model is a mechanism of cash management which is used to determine optimum cash balance. Optimum cash balance is resolute

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd