Each ADR Represents ________ of the Shares of the Underlying

question 62

Multiple Choice

Each ADR represents ________ of the shares of the underlying foreign stock.

• A) a multiple
• B) 100
• C) 1
• D) ADRs have nothing to do with foreign stocks.

---

Definitions:

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Straight-Line Depreciation

An approach to spreading out the expense of a tangible asset uniformly over the asset's operational life on a yearly basis.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a particular time, listing assets, liabilities, and shareholders' equity.

Net Income

Total revenue minus total expenses, indicating the profit earned by a company in a specific period.