Which of the Following Is True of American Depository Receipts

question 22

Multiple Choice

Which of the following is true of American Depository Receipts (ADRs) ?

• A) Investors who buy ADRs have to pay a currency-conversion fee.
• B) There is a minimum purchase requirement for ADRs.
• C) Companies offer ADRs in the U.S. to appeal to mutual funds.
• D) ADRs are listed and traded in London and Luxembourg.

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Definitions:

Elements Necessary

Fundamental components or conditions required for a legal claim, contract, or other judicial act to be valid or enforceable.

Hula Hoop

A toy hoop that is twirled around the waist, limbs, or neck, popularized in the 1950s.

Rebate

A partial refund to someone who has paid too much money for tax, rent, or utility.

Auction Without Reserve

A type of auction in which the item for sale will be sold regardless of the price since there is no minimum bidding threshold set.