A receipt that represents foreign shares owned and traded by U.S. investors is called a(n):
A) global depository receipt
B) American depository receipt
C) representative depository receipt
D) Exchange traded fund

Question

Quizplus · Accepted Answer

An American depository receipt (ADR) is a financial instrument that represents foreign shares owned and traded by U.S. investors. It is issued by a U.S. bank that holds the foreign shares on behalf of the investors, and the ADRs can be traded on U.S. stock exchanges like regular stocks. A global depository receipt (GDR) represents shares traded outside the U.S. market, and a representative depository receipt and exchange-traded fund (ETF) are not specific to foreign shares.

A Receipt That Represents Foreign Shares Owned and Traded by U.S