What are the advantages of issuing global depository receipts?

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Solution

The advantages of issuing global depository receipts are as follows:

Foreign investors find it easier to invest in companies located in a different country.

Domestic companies of a country gain access to financial markets in a foreign country.

It helps in creating a global presence for the company

Also read:

Difference Between ADR and GDR

ADR American Depository Receipts

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A Global Depository Receipt is a bank certificate that is basically issued in more than one country for shares in a foreign company.

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