Which of the Following Is NOT an Advantage of ADRs

question 37

Multiple Choice

Which of the following is NOT an advantage of ADRs to U.S. shareholders?

• A) Transfer of ownership is done in the U.S. in accordance with U.S. laws.
• B) In the event of the death of the shareholder, the estate does not go through a foreign court.
• C) Settlement for trading is generally faster in the United States.
• D) All of the above are advantages of ADRs.

---

Definitions:

Moral Obligation

A duty which one owes, and which one ought to perform, but which he is not legally bound to fulfill.

Rawlsian Justice

A theory of distributional justice that concludes that the social contract emerging from the “original position” would call for an income distribution that would maximize the well-being of the worst-off member of society.

Risk Averse

A preference for avoiding loss over making a gain.

Marginal Utility

The extra pleasure or benefit gained from using one more unit of a product or service.