All of the Following Are True Regarding American Depository Receipts

question 19

Multiple Choice

All of the following are true regarding American Depository Receipts (ADRs) EXCEPT:

• A) Most ADRs are unsponsored, meaning that the DR bank creates a DR program without a formal agreement with the issuing non-US company.
• B) An ADR is a derivative instrument traded in the US that usually represents a fixed number of publicly traded shares of a non-US company.
• C) ADRs are denominated in US dollars.
• D) A Level 1 sponsored ADR is the easiest way for a non-US company to access US markets.

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Definitions:

Embryo

An early stage in the development of a multicellular organism, following fertilization and before becoming a fetus.

Fetus

A developing human from roughly eight weeks after conception until the time of birth.

Placenta Expelled

The process occurring after childbirth where the placenta, which provides oxygen and nutrients to the fetus, is expelled from the uterus.

Inguinal Canal

Passage through the lower abdominal wall that transmits the spermatic cord in the male and the round ligament in the female.