Canadian Depositary Receipt CDR
A Canadian-listed receipt that holds a fraction of a U.S. stock, priced in Canadian dollars with a built-in currency hedge.
What it is
A Canadian Depositary Receipt (CDR) is a security issued by CIBC that represents a fractional interest in a foreign stock (mostly large U.S. names like Apple or Amazon) and trades on a Canadian exchange in Canadian dollars. Each CDR holds a set number of underlying shares, expressed as a CDR ratio. The CDR also carries a notional currency hedge, so the investor's return mainly reflects the stock's move, not the USD/CAD move.
Why it matters
CDRs let a Canadian investor own a slice of an expensive U.S. stock in CAD, in smaller dollar amounts, without opening a U.S.-dollar account or paying to convert currency. The built-in hedge removes most of the exchange-rate swing, which can help or hurt depending on which way the loonie moves. They are a convenience wrapper, not a different company than the underlying stock.
How it's calculated
A CDR's value tracks the underlying share price times the CDR ratio, converted to CAD, adjusted by a daily-changing hedge factor. The CDR ratio is reset each day so the currency exposure stays roughly neutralized.
How Quintarthai uses it
When you research a U.S. company on Quintarthai, the fundamentals you see (revenue, margins, QuinnScore) describe the underlying business that a CDR tracks — open the company page to study the stock itself, since a CDR is just a CAD-hedged wrapper around it.