Series 7 - General Securities Representative Exam
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Regarding ADRs, which of the following statements is true?
They are only available for trade outside of local trading hours; in the time zone of the issuing company's country
A
US Buyers of ADRs can receive dividends, but the dividends are priced in a foreign currency
B
ADRs represent receipts for US securities that trade on foreign exchanges
C
ADRs represent receipts for foreign securities that trade on US exchanges. represent receipts for foreign securities that trade on US exchanges
D
Explanations
American Depository Receipts represent receipts for foreign securities that trade on US exchanges. They trade during US market hours and dividends are paid in US dollars