A negotiable certificate issued by a U.S.bank to represent the underlying shares of a foreign corporation's stock is called a(n)________.
A)Euroequity
B)American Depositary Receipt
C)Global Depositary Receipt
D)European Depositary Receipt

Question

Quizplus · Accepted Answer

An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing the underlying shares of a foreign corporation's stock. A Euroequity is a similar instrument, but it is traded on a European stock exchange. Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs) are also similar instruments, but they are issued by banks outside of the U.S.

A Negotiable Certificate Issued by a U