European Depositary Receipt

A European Depositary Receipt (EDR) represents ownership in the shares of a non-European company that trades in European financial markets. The stock of many non-European companies trade on European stock exchanges like London Stock Exchange through the use of EDRs. EDRs enable European investors to buy shares in foreign companies without the hazards or inconveniences of cross-border & cross-currency transactions. EDRs carry prices in Euro, pay dividends in Euro, and can be traded like the shares of European-based companies.