Companies can have their shares traded, and raise capital in offshore markets by listing or issuing equity in international markets in the form of depository receipts. The market for depository receipts is huge. In 2018, 156.5 billion DRs were traded, valued at $4.2 trillion.
Key learning objectives:
Define Depositary Receipt
Discuss the various properties, benefits and negatives of issuing DRs
Explain the different types of ADRs, and the difference between sponsored and unsponsored DRs