Foreign Stocks Traded in the United States and Stated in Dollars

question 28

Multiple Choice

Foreign stocks traded in the United States and stated in dollars are

• A) CD's.
• B) ADR's.
• C) Primes.
• D) Class B Stock.

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Definitions:

Equity Method

An accounting technique used by companies to record their investments in other companies, adjusting the investment for the investor's share of the investee's profits or losses.

Consolidated Inventory

The total value of all inventories held by a parent company and its subsidiaries, accounted for in a consolidated financial statement.

Unrealized Inventory Profits

Profits that are reported on paper through an increase in inventory value but have not yet been realized through sales.

Significant Influence

Significant Influence is the ability of an investor to affect the financial or operating policy decisions of the investee through ownership, contracts, or other means, short of full control or joint control.