Which of the Following Is Not True Regarding ADRs

question 56

Multiple Choice

Which of the following is not true regarding ADRs?

• A) ADRs are denominated in the currency of the stock's home country.
• B) ADRs enable U.S. investors to avoid cross-border transactions.
• C) ADRs allow non-U.S. firms to tap into the U.S. market for funds.
• D) ADRs sometimes allow for arbitrage opportunities.

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