Which of these is an advantage of American Depository Receipts (ADRs)?
A) Investors who buy ADRs pay no currency-conversion fees.
B) There are no minimum purchase requirements for ADRs.
C) Companies offer ADRs in the U.S. to appeal to mutual funds.
D) All of the above.

Question

Quizplus · Accepted Answer

All three options are advantages of American Depository Receipts (ADRs). Investors who buy ADRs pay no currency-conversion fees, making it easier to invest in foreign companies. There are no minimum purchase requirements for ADRs, which means investors can buy as many or as few shares as they want. Also, companies offer ADRs in the U.S. to appeal to mutual funds, which increases their exposure to American investors.

Which of These Is an Advantage of American Depository Receipts