A Global Depositary Receipt (GDR) is a financial instrument that allows investors to buy shares of foreign companies without dealing with the complexities of foreign stock markets. GDRs are issued by a bank and represent a specific number of shares in a foreign company, making it easier for investors to diversify their portfolios internationally. GDRs are traded on major stock exchanges, providing liquidity and accessibility for investors. They are commonly used by companies from emerging markets to attract foreign investment. This instrument simplifies the process of investing in international markets while adhering to local regulations and standards.