Which one of the following securities is used as a means of investing in a foreign stock that otherwise could not be traded in the United States?

Question

Quizplus · Accepted Answer

American Depository Receipts (ADRs) are securities that represent ownership in a foreign company's stock. They are denominated in U.S. dollars and traded on U.S. exchanges, making it easy for U.S. investors to invest in foreign companies that may not be available for trading on U.S. exchanges. Yankee bonds and Yankee stocks are both issued by foreign entities and traded in the U.S. market, but they do not provide direct ownership in a foreign company's stock. LxIBOR is a type of floating interest rate used in financial contracts, and gilt refers to bonds issued by the UK government.

Which One of the Following Securities Is Used as a Means