ADR (American Depositary Receipt): An ADR is a certificate issued by a US bank representing shares of a foreign company. These certificates are traded on US exchanges like the NYSE or Nasdaq, making it easier for US investors to invest in foreign companies without dealing with international trading complexities. β’ GDR (Global Depository Receipt): A GDR is similar to an ADR but is issued on international exchanges outside the US. These exchanges are often located in Europe (e.g., London Stock Exchange, Luxembourg Stock Exchange). GDRs allow companies to raise capital internationally and offer investors global investment opportunities.