ADR stands for American Depositary Receipt, which facilitates investment in foreign shares by American investors by allowing them to purchase shares in foreign companies through a US exchange. This helps eliminate some of the barriers to investing in foreign companies, such as dealing with foreign currencies or stock exchanges. Therefore, option A is the best choice.

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An "ADR" Is Used to

Question 91

Multiple Choice

An "ADR" is used to

A) facilitate investment in foreign shares by American investors.
B) allow American investors to participate in the debt securities of other countries.
C) guarantee dividends from foreign companies.
D) insure against foreign exchange currency risk.

Correct Answer: