Shares of a Foreign Corporation Issued Directly to U

question 17

Multiple Choice

Shares of a foreign corporation issued directly to U.S. investors through a transfer agent but denominated in the currency of the issuing company are called ______.

• A) American shares
• B) American depository receipts
• C) Yankee stocks
• D) More than one of the above None of the above

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Definitions:

Compounded Annually

Interest calculation method where the interest is added to the principal sum at the end of each year, affecting the total interest earned or paid.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Per Year

A synonym for annually, denoting events or measurements taking place once every calendar year.

Effective Annual Rate

The interest rate on an investment or loan, which is annualized by considering the effect of compounding over a given period.