Which of the following is not true about American Depository Receipts (ADRs) ?
A) ADRs are claims issued by U.S. financial intermediaries (FIs) against shares in foreign companies, with the shares held in custody by the FIs for investors.
B) ADRs are issued in the U.S. and are denominated in U.S. dollars. All cash flows to the investor are in dollars.
C) An ADR enhances a company's visibility, status and profile in the U.S. and internationally among investors.
D) An ADR decreases the foreign firm's U.S. liquidity (and potentially total global issuer liquidity) .
Correct Answer:
Verified
Q24: Equity capital can be raised through the
Q26: Preferred stockholders have a claim junior to
Q28: A proxy is an absentee ballot that
Q30: Investors with 30 per cent of the
Q31: Which of the following terms is associated
Q32: The sale of securities to the public
Q37: Which of the following is not an
Q38: The household sector is the largest surplus
Q39: Regulators provide a valuable function for the
Q40: Which of the following terms is not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents