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Discussion

Consider the following statements

i. American depositary receipts are securities of a non-US company that trade in the US financial markets.

ii. ADR is a negotiable security which represents securities of companies that is foreign to the market which the DR trades.

Which of the statements given above is/are correct?

  • A.Only 1
  • B.Only 2
  • C.Both 1 and 2
  • D.Neither 1 nor 2

Answer: C

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