American Depository Receipts (ADRs) Are Certificates That Give Foreign Stockholders

question 3

True/False

American Depository Receipts (ADRs) are certificates that give foreign stockholders a legal claim on U.S. companies' foreign stock.

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Definitions:

Private Placement

The sale of securities to a relatively small number of select investors as a way of raising capital.

Sophisticated Investor

An investor with significant experience, assets, and knowledge, capable of making well-informed financial decisions and understanding risks.

Accredited Investor

An individual or entity recognized as having the financial sophistication and capacity to bear the risk of investment opportunities that demand less regulatory disclosure.

Securities

Tradable financial assets including stocks, bonds, and options, which represent an investment and a means for entities to raise capital.