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.

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Definitions:

Province

A territorial division within a country, often with its own local government.

Competition Act

Legislation aimed at promoting healthy competition and preventing monopolies, anti-competitive practices within an economy.

Restraint of Trade

Legal agreements or policies that restrict competition or limit the freedom to conduct business in a specific market or manner.

Loss Leader Advertising

A marketing strategy where a product is sold at a loss to attract customers in the hope they will buy other items at full price.