A broker has purchased stock in Sony Corporation and has asked Citibank to act as a custodian of this stock.Citibank has issued a negotiable instrument representing ownership interest in the stock of the Japanese company.These negotiable instruments are denominated in dollars and not in yen.This is an example of a(n):

Question

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This is an example of a Depository Receipt (DR) because Citibank is holding the stock of a foreign company (Sony Corporation) and has issued a negotiable instrument (most likely an American Depository Receipt or ADR) representing ownership of this stock in the form of a certificate denominated in dollars. A DR is a negotiable financial instrument issued by a depositary bank representing ownership of a foreign company's securities.

A Broker Has Purchased Stock in Sony Corporation and Has