American Depository Receipt (ADR)

American Depository Receipt (ADR)
 By Finance Ocean

What does an American Depository Receipt (ADR) represent?

Pick an answer:

1. A U.S. security traded in a foreign market
2. A foreign security in a U.S. market
3. A U.S. CD held by a foreign entity
4. A foreign CD held by a U.S. entity

Answer: # 2

Explanation: An ADR is a receipt issued by U.S. banks that shows ownership of a foreign security.
These receipts are then traded in U.S. securities markets.

Take another finance quiz at FinanceOcean.org or read up on Capital Markets.