Since 1927 foreign companies have listed their shares on the New York Stock Exchange by issuing American depositary receipts, or ADRs. Foreign companies have found the ADR a very corporate friendly system by which foreign corporations could reach investors in the New York equity capital markets.
But in October 2001, Deutsche Bank of Germany chose to list on the New York Stock Exchange via global registered shares (GRSs). Many critics argued that by listing through GRSs Deutsche Bank would experience lower trading in their shares. The question floating among many international analysts was why the bank had chosen GRSs over ADRs.
Deutsche Bank may have learned the ropes of GRSs through services it provides to another GRS issuer, Celanese AG. Celanese AG, Germany, had listed GRSs in New York in October 1999, allowing its stockholders to trade shares simultaneously in Frankfurt and New York.
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