SIE practice questioneasyADRs
American Depositary Receipts (ADRs) allow U.S. investors to:
- AOwn shares of foreign companies traded in the U.S.✓ Correct answer
- BPurchase U.S. Treasury securities in Europe.
- CBuy mutual funds denominated in foreign currency.
- DInvest only in U.S.-based companies.
Explanation
Why A — Own shares of foreign companies traded in the U.S.
ADRs represent ownership in foreign company shares, making it easier for U.S. investors to invest internationally. Treasury securities and mutual funds don't involve ADRs.
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