American depository receipts are held by a bank in the stock's home country and these receipts then are traded on the U.S. exchange.

Question

Quizplus · Accepted Answer

This is correct. American depository receipts (ADRs) are held by a bank in the stock's home country and represent ownership of a certain number of underlying shares. These receipts can then be traded on the U.S. exchange, allowing U.S. investors to invest in foreign companies.

American Depository Receipts Are Held by a Bank in the Stock's