________ Are Negotiable Certificates Issued by a Bank to Represent

question 59

Multiple Choice

________ are negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank.

• A) Negotiable CDs
• B) International mutual funds
• C) Depositary receipts
• D) Eurodeposits

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Definitions:

All Equity Firm

A company that finances its operations without any debt, using only its own equity.

Capital Structure

The mix of different forms of external funds used to finance a company's total capital, including debt and equity.

Coupon Rate

The annual yield paid on a bond, indicated as a percentage of its principal amount.

All Equity Firm

A business that is financed entirely through equity capital, having no debt components in its capital structure.