Rather than directly issuing stock in the U.S.to obtain equity funds,foreign corporations can issue ___________,which are certificates representing underlying bundles of stock.

Question

Quizplus · Accepted Answer

American Depositary Receipts (ADRs) are certificates issued by U.S. banks representing bundles of foreign stock. ADRs allow foreign corporations to obtain equity funds from U.S. investors without directly issuing stock in the U.S. market. This provides a way for foreign companies to tap into the U.S. capital markets while avoiding the regulatory and reporting requirements of a U.S. initial public offering (IPO). Therefore, Option A is the best choice. Options B, C, and D are not relevant to this issue.

Rather Than Directly Issuing Stock in the U