Certificates that represent ownership in stocks of foreign companies and are held in trusts at banks located in the countries where the stocks are traded are called _____.

Question

Quizplus · Accepted Answer

American depository receipts (ADRs) are certificates that represent ownership of stocks of foreign companies and are held in trusts at banks located in the countries where the stocks are traded. ADRs are traded on U.S. stock exchanges like regular stocks and allow investors to invest in foreign companies without having to deal with currency exchange rates or overseas brokerage accounts.

Certificates That Represent Ownership in Stocks of Foreign Companies and Are