BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Non-U.S. firms also obtain equity financing by issuing ____
A
Eurobonds
B
Foreign bonds
C
American Depository Receipts
Explanation: 

Detailed explanation-1: -The best answer is B. An American Depositary Receipt is a foreign security that is held in a foreign branch of a U.S. bank. The bank issues receipts against these shares, and the receipts are registered in the United States as securities and are listed and traded on U.S. stock exchanges.

Detailed explanation-2: -An American depositary receipt is a certificate issued by a U.S. bank that represents shares in foreign stock. These certificates trade on American stock exchanges. ADRs and their dividends are priced in U.S. dollars. ADRs represent an easy, liquid way for U.S. investors to own foreign stocks.

Detailed explanation-3: -American Depositary Receipts (ADR) are negotiable security instruments that are issued by a US bank that represent a specific number of shares in a foreign company that is traded in US financial markets.

Detailed explanation-4: -Which of the following is true of American Depository Receipts (ADRs)? Investors who buy ADRs have to pay a currency-conversion fee. There is a minimum purchase requirement for ADRs. Correct Companies offer ADRs in the U.S. to appeal to mutual funds.

There is 1 question to complete.