QUESTION 26 1 points Which of the following factors are related to an ADR? Facto

Question

QUESTION 26 1 points Which of the following factors are related to an ADR? Factor-1: An ADR is a certificate that represents ownership of a foreign stock. An ADR is typically created by a U.S. bank who buys stock in foreign corporations in their domestic currencies and places them in its vault Factor - 2: The major attraction to U.S. investors is that ADRs are claims to foreign companies that trade on domestic (U.S.) exchanges and in dollars. O A. Only Factor 1 is correct Only Factor 2 is correct Both Factors are correct Neither Factor is correct.

Explanation / Answer

Answer) The answer to the above question is option c both the factors stated are correct.

ADRs are known as American Depository Receipts these are issued by U.S banks representing a specified number of shares of a foreign stock traded on a U.S. exchange.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.