CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Level I ADRs ______

I. are traded in the over-the-counter (OTC) market.
II. can be offered to certain qualified institutional buyers only.
III. are issued by brokers, dealers, or depository banks without the involvement of the issuer.
Correct Answer: I only

II. Level I ADRs can be offered to the public. However, if the issuer wants to raise capital in the US, it must be done through a private placement and only certain qualified institutional buyers can participate.
III. Unsponsored ADR are issued by brokers, dealers, or depository banks without the involvement of the issuer.

User Contributed Comments 4

User Comment
Swetha Then why isn't Statement no. II correct ??
alki notice the word only at the end of statement II
joywind ADRs makes the ownership diversified internationally, not the same thing as 'raising capital' which adds more ownership.
johntan1979 III fits the definition of UNsponsored DRs, whereas all ADRs are sponsored.
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