CFA Practice Question

There are 494 practice questions for this topic.

CFA Practice Question

Which statement is false?
A. The majority of GDRs are denominated in U.S. dollars.
B. GDRs cannot be sold to investors based in the U.S.
C. An ADR is one form of GDR.
Explanation: GDRs are not listed on U.S. exchanges but they can be privately placed with institutional investors based in the U.S.

User Contributed Comments 4

User Comment
gill15 ADR's are in GDR's as well....forgot..
tomalot Are they? LOS says that GDRs trade outside the US and ADRs trade in the US
GBolt93 That's correct. They're not on an exchange so they're not traded, but they can still be bought by private investors.
edrei7 GDR is actually just a general name for any depositary receipt. DRs with a country name prefix just means a DR LISTED (keyword) in that country. We can easily have Chinese DRs, Philippine DRs, etc. You could say a GDR is an origin that specifies further down the line.
You need to log in first to add your comment.