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:

Advertising

A means of communication with the users of a product or service, often aimed at promoting the sale of goods or services.

Little Information

A situation where there is a lack of sufficient or detailed data to fully understand a topic or make informed decisions.

Media

Various means of communication, including television, radio, newspapers, and the internet, used to disseminate information to the public.

Foreign Market

A market outside the domestic boundaries of a country where goods, services, and capital are traded.