Which of the Following Is Not True About American Depository

question 61

Multiple Choice

Which of the following is not true about American Depository Receipts (ADRs) ?

• A) ADRs are claims issued by U.S. financial intermediaries (FIs) against shares in foreign companies, with the shares held in custody by the FIs for investors.
• B) ADRs are issued in the U.S. and are denominated in U.S. dollars. All cash flows to the investor are in dollars.
• C) An ADR enhances a company's visibility, status and profile in the U.S. and internationally among investors.
• D) An ADR decreases the foreign firm's U.S. liquidity (and potentially total global issuer liquidity).

---

Definitions:

Timers

Devices or software tools that measure time intervals, commonly used in industrial control systems to control operations and processes over time.

Motor(s) Start(s)

The process of initiating the operation of an electric motor, activating its mechanism to begin rotation or movement.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.