Level I ADRs Trade Primarily

question 31

Multiple Choice

Level I ADRs trade primarily:

• A) on the New York Stock Exchange.
• B) on the American Stock Exchange.
• C) over the counter or pink sheets.
• D) Level I ADRs typically do not trade at all, but instead are privately issued and held until maturity.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Minority Active Investment

An investment where the investor holds a non-controlling interest in a company but is still actively involved in its management or operations.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized and subsequently adjusted for the investor’s share of the net assets of the investee, including recognized income or loss.

Cost Method

An accounting method used to record investments in which the investment is recorded at its acquisition cost without recognizing subsequent changes in market value.