Certificates representing ownership in stocks of foreign companies, which are held in a trust bank located in the country the stock is traded are called _____.

Question

Quizplus · Accepted Answer

Certificates representing ownership in stocks of foreign companies held in a trust bank located in the country the stock is traded are called American depository receipts (ADRs). ADRs are issued by U.S. banks that purchase shares of foreign companies and deposit them in a U.S. bank in the form of ADR certificates. These certificates are then traded on U.S. stock exchanges like regular stocks.

Certificates Representing Ownership in Stocks of Foreign Companies, Which Are