Category: Global Investing
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Global depository receipts for Indian companies: how they work
Short answer: A global depository receipt (GDR) is a negotiable certificate, meaning one that can be bought and sold, issued by an overseas bank. It stands for a set number of shares in a company incorporated in another country, and it can be traded on international stock exchanges. The holder owns the receipt, while the…
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What Are Swap Derivatives and How Do They Work?
Short answer: A swap is a negotiated agreement between two parties to trade cash flows or liabilities linked to financial instruments, mainly to manage risk. In most swaps, the parties never hand over the principal amount, which serves only as a reference figure for calculating payments. Last reviewed: 5 November 2026 At a glance Swap…
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What Is Foreign Direct Investment, and How Does It Work?
Short answer: Foreign direct investment, or FDI, is cross-border investment (money that crosses a national border) in which an investor based in one country acquires significant, ongoing influence over a business located in another country. The investor is not just a passive holder of shares; it is an active owner that takes part in how…