ADRs, GDRs and GRS

CFA Level I Equities
#1

What is the diffr between ADRs and GDRs? My understanding is that ADRs are only for people in US. GDRs for people worldwide…

So, let’s say if sitting in India I want to buy AAPL stock, I’ll purchase AAPL GDR on Indian stock exchange ( listed by some I bank, say JPM, on the exchange) by paying in INR. Similarily, a person in AU could buy GDR on AU stock exchange by buying GDR listed by JPM in Australia in AUD. While if a company in India, say TATA, wants to raise capital in US, they’ll go for ADR…If they wish to do so for Europe, they will go for GDR…

So, all GDRs are traded in the respective domestic country’s home currency, right? ADRs, on the other hand, are in USD only. Quick question: If I buy a stock in India and sell it in AU, which stock is it most likely? 1. GDR 2. ADR

  1. GRS?
#2
  1. GRS.
#3

But the answer says GDR. Even I think it should be GRS. What about my understanding on GDRs? Is it correct S2000Magician?

#4

I’m not overly familiar with ADRs, GDRs, and GRSs. Is there an explanation with the answer?

#5

Unfortunately, there is no explanation. Thank you for reverting back.