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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Equity Securities questions