BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the currency of the country where they trade and issued outside the United States
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U.S. dollars and issued in the United States
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U.S. dollars and issued outside the United States
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Detailed explanation-1: -Global Depositary Receipts While ADRs are traded on a U.S. national stock exchange, GDRs are commonly listed on European stock exchanges such as the London Stock Exchange. Both ADRs and GDRs are usually denominated in U.S. dollars, but can also be denominated in euros.
Detailed explanation-2: -The equity shares issued against GDR are held by an international bank called depository. GDRs can be issued in any country other than the USA.
Detailed explanation-3: -U.S. investors can potentially invest in either ADRs or GDRs. ADRs are only offered by a foreign company through a share offering in the United States. GDRs will usually be offered in multiple countries as part of a GDR program.
Detailed explanation-4: -Depositary receipts that are traded in an international market other than the United States are referred to as Global Depositary Receipts.