ADRs Cannot Be Exchanged for the Underlying Shares of the Foreign

question 34

True/False

ADRs cannot be exchanged for the underlying shares of the foreign stock, therefore, arbitrage cannot keep the prices in line with the foreign price of the stock.

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Definitions:

Remembering

The cognitive process of retrieving past experiences, information, and events from the memory store.

Generative

Relating to the capacity to produce or create something, often used in linguistics to refer to the ability of language to generate an infinite number of sentences.

Language

A system of symbols and rules used for communication, including spoken, written, or signed forms of expressing thoughts and emotions.

Symbolic

Representing something other than itself, often through an association, resemblance, or convention, particularly in literature and art.