Shares of a foreign corporation that are traded domestically and pay dividends and capital gains in the domestic currency are called ______.

Question

Quizplus · Accepted Answer

Shares of a foreign corporation traded domestically and paying dividends in the domestic currency are called depository receipts, also known as ADRs (American Depository Receipts) or GDRs (Global Depository Receipts). These depository receipts represent a certain number of shares of the foreign corporation and allow for domestic investors to easily invest in foreign companies without having to deal with the foreign currency or regulations.

Shares of a Foreign Corporation That Are Traded Domestically and Pay