Investment Vehicles第 35 / 110 题
An American Depositary Receipt (ADR) allows a U.S. investor to do which of the following?
a.Buy U.S. Treasury securities at a discount
b.Hold shares of a foreign company that trade in U.S. markets and dollars
c.Avoid all currency risk on foreign holdings
d.Purchase municipal bonds tax-free
解析
An ADR is a negotiable certificate representing shares of a foreign company, allowing U.S. investors to trade in dollars on domestic markets. Despite dollar-denominated trading, ADRs still carry currency risk from the underlying foreign shares. They do not involve Treasuries or municipal bonds.
免费刷完整 110 道题库 — 无需注册。
同考点相关题目
- Which bond carries the greatest interest rate risk, all else equal?
- A convertible bond gives the holder the right to:
- Commercial paper is best described as which of the following?
- Yield to maturity (YTM) of a bond takes into account which of the following that current yield ignores?
- A unit investment trust (UIT) differs from a mutual fund primarily because a UIT:
- Which risk is most directly associated with owning a callable bond?