An ADR is a. a claim issued by a U.S. bank representing ownership of shares of a

Question

An ADR is

a. a claim issued by a U.S. bank representing ownership of shares of a foreign company's stock held on deposit by the U.S. bank and is issued in dollars to U.S. investors. b. a claim issued by a foreign bank representing ownership of shares of a foreign company's stock held on deposit by the foreign bank and is issued in dollars to U.S. investors.
c. a claim issued by a U.S. bank representing ownership of shares of a U.S. company's stock held on deposit by the U.S. bank and is issued in dollars to U.S. investors.
d. none of these.

Explanation / Answer

An American Depositary Receipt (ADR) is a certificate that represents shares of a foreign stock owned and issued by a U.S. bank. Hence it is a claim issued by a U.S. bank representing ownership of shares of a foreign company's stock held on deposit by the U.S. bank and is issued in dollars to U.S. investors

Option "a" is correct

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