Which of the Following Represents One or More Shares of a Foreign

question 108

Multiple Choice

Which of the following represents one or more shares of a foreign stock?

• A) ETF.
• B) American Depositary Receipt (ADR).
• C) Regional fund.
• D) Country fund.

---

Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or loss.

Common Stock

This represents units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The sum total of profit a company achieves after removing the costs and tax payments from its income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets.