Definition for: International Depository Receipt
An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of shares of the underlying stock of a foreign corporation that the bank holds in trust. The advantage of IDRs is that the investor does not have to comply with various regulatory requirements of the foreign country that the stock is to be traded. The United States version of the international depository receipt is the "American Depository Receipt" or "ADR."
