Depositary Receipts (DRs) are financial instruments representing a foreign company's publicly traded securities, enabling easier investment opportunities by circumventing several barriers in investing directly in foreign markets.
Foreign investment refers to the investments made by citizens or governments of one country into the industries of another country, including investments within a country by foreigners. The income tax treatment of foreign investment income is often governed by tax treaties between the country of the investment owner and the country where the investment is located.
The Yankee Bond Market involves dollar-denominated bonds issued in the United States by foreign banks and corporations. Issuers tap this market when conditions in the U.S. are more favorable compared to other international or domestic bond markets.
