You live in the U.S.and want to invest in a Chinese company,which will be referred to as "CC," because you believe its stock is uniquely positioned to be unusually profitable over the next five years.However,you do not have direct access to the Chinese financial markets.You may be able to indirectly invest in CC by purchasing which one of the following?

Question

Quizplus · Accepted Answer

ADR stands for American Depository Receipt, which is a certificate issued by a U.S. bank that represents a specified number of shares of a foreign company's stock. Therefore, by purchasing CC's ADR, the investor can indirectly invest in CC without facing any direct access issues to the Chinese financial markets. ADRs of Chinese companies trading on U.S. exchanges are a common way for investors to participate in Chinese markets.

You Live in the U