Although American Depository Receipts (ADRs) are traded in the U.S. in dollars, U.S. investors may still incur foreign currency risk.

Question

Quizplus · Accepted Answer

ADRs represent the underlying stock of a foreign company, therefore any changes in the foreign currency can impact the value of the ADR to U.S. investors. This means that U.S. investors can still incur foreign currency risk even though they are trading in U.S. dollars.

Although American Depository Receipts (ADRs) Are Traded in the U