A European depositary receipt (EDR) represents ownership in the shares of a non-European company that trades in European financial markets.
It is a European equivalent of the original American depositary receipts (ADR).
The EDR is issued by a bank in Europe representing stocks traded on an exchange outside of the bank’s home country.
[1] EDRs enable European investors to buy shares in foreign companies without the hazards or inconveniences of cross-border and cross-currency transactions.
[2] If the EDR is issued in euros, it pays dividends in euros and can be traded like the shares of European companies.