International Depository Receipt (IDR)

An international depository receipt (IDR) is a negotiable certificate that banks issue. It represents ownership in the stock of a foreign company that the bank holds in trust. International depository receipts are also known as American Depository Receipt (ADR) in the U.S. ADRs represent stocks of quality issuers in a number of developed and emerging markets. In Europe, IDRs are known as Global Depository Receipts, and trade on the London, Luxembourg, and Frankfurt exchanges. IDR can also specifically refer to Indian Depository Receipts (IDRs).