Which of the following ADRs is considered the most risky type of ADR?

Question

Quizplus · Accepted Answer

Level 1 ADRs are considered the most risky because they have the least regulatory requirements. They do not have to comply with the U.S. GAAP (Generally Accepted Accounting Principles) and are not required to file their financial statements with the SEC (Securities and Exchange Commission). This lack of regulatory oversight can make it harder for investors to find reliable financial information, increasing the risk.

Which of the Following ADRs Is Considered the Most Risky