- CFA Exams
- CFA Level I Exam
- Study Session 13. Equity Investments (2)
- Reading 39. Overview of Equity Securities
- Subject 4. Investing in Non-Domestic Equity Securities
CFA Practice Question
A security issued in the United States that represents shares of stock in a foreign company is called a(n) ______.
A. American depositary receipt (ADR)
B. Euro
C. bought deal
Explanation: ADRs are certificates of ownership issued by banks which hold the shares of a foreign firm in an overseas account. The certificates themselves are denominated in U.S. dollars and pay dividends in U.S. dollars.
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