Which of the Following Is True of American Depository Receipts

question 36

Multiple Choice

Which of the following is true of American depository receipts?

• A)With the exception of stocks traded in the United States, stocks that are traded in a country other than the issuing company's home country are called American depository receipts.
• B)American depository receipts are pools of stocks of different American companies issued by foreign companies that are traded in international stock markets.
• C)An American depository receipt is the stock of an American company that is traded in foreign countries.
• D)If a Japanese company sells its stocks in the United States, the transaction is termed an American depository receipt.
• E)American depository receipts provide U.S. investors with the ability to invest in foreign companies with less complexity and difficulty than might otherwise be possible.

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Definitions:

Rational Emotive Therapy

A form of psychotherapy that identifies irrational beliefs, challenges them, and encourages the development of more rational and adaptive thoughts and behaviors.

Cognitive Therapy

Form of psychotherapy that focuses on how a person’s thoughts lead to feelings of distress, with the aim of helping them change these irrational thoughts.

Transference

Process in psychoanalysis in which the patient transfers all of the positive or negative emotions associated with the patient’s other relationships to the psychoanalyst.

Aversive Conditioning

Counterconditioning technique that pairs an unpleasant stimulant with an undesirable behavior.