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ADRs Are a Popular Investment Tool for Many U

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Essay

ADRs are a popular investment tool for many U.S. investors. In recent years several alternatives for investing in foreign equity securities have become available for U.S. investors, yet ADRs remain popular. Define what an ADR is and provide at least three examples of the advantages they may hold over alternative foreign investment vehicles for U.S. investors.


Definitions:

External Financing

Funding acquired from sources outside the company, such as loans, stock issues, or bonds.

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