- Depositary
- A bank providing all agency services in connection with a depositary receipt program. The depositary bank issues and cancels the receipts which represent ownership of the underlying shares, distributes dividend payments and shareholder information, maintains the register of holders and arranges a custodian to hold the ordinary shares.
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- Depositary Receipt (DR)
- A negotiable certificate representing ownership of one or more shares in a foreign company, that is quoted and traded in the currency of the market in which it trades, usually US Dollars. DRs provide a facility for investors outside the issuer’s home market to invest in the issuer’s security.
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- Depository Trust Company (DTC)
- A national clearing house for the settlement of trades in corporate, municipal and mortgage-backed securities. DTC records, maintains, and transfers securities for participants. DTC participants include securities brokers and dealers, banks, trust companies and clearing
corporations. The DTC system reduces the physical movement of certificates by permitting computerized transfers of book-entry securities.
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- Dividend Reinvestment Plan (DRIP)
- A plan offered by issuers that allows investors to reinvest dividend payments in the shares or depositary receipts of the issuer without using a brokerage firm.
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