ADRs are securities that represent shares of non-U.S. companies, and they are backed by American depositary shares (ADSs). ADRs permit U.S. investors to hold shares of non-U.S. companies and trade them in U.S. markets. Option B and C are incorrect as they refer to securities that represent shares of U.S. companies, which is not true for ADRs. Option D is incorrect as ADRs do not permit trading in international markets, but only in U.S. markets.

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ADRs Are ________

Question 46

Multiple Choice

ADRs are ________.

A) securities, backed by American depositary shares (ADSs) , that permit U.S. investors to hold shares of non-U.S. companies and trade them in U.S. markets
B) securities, backed by Securities Exchange Commission (SEC) , that permit all investors to hold shares of U.S. companies and trade them in U.S. markets
C) securities, backed by American depositary shares (ADSs) , that permit non-U.S. investors to hold shares of U.S. companies and trade them in U.S. markets
D) securities, backed by Securities Exchange Commission (SEC) , that permit U.S. investors to hold shares of non-U.S. companies and trade them in international markets.

Correct Answer: