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:

Client Confidentiality

A legal and ethical obligation to protect the privacy of client information.

Legal Ethics

The principles and codes of conduct that govern the behavior of legal professionals.

Disciplinary Proceeding

A formal process where professional conduct is reviewed, and disciplinary actions may be taken for violations.

Malpractice Lawsuit

A legal action taken against a professional, such as a doctor or lawyer, for negligence or incompetence that results in harm to a client or patient.