Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:Most American investors who are interested in investing in companies listed on foreign exchanges
do so by purchasing
O Foreign stocks directly from brokers that do business in the country where the company is located.
Cola
O Foreign stocks from brokers in the United States.
O American Depository Receipts (ADRS) or mutual funds that hold international stocks.
O Stocks directly from the foreign company.
O None of these.
Expert Solution
Step 1
American Depository Receipts:
- It is a certificate representing the shares of foreign stock issued by the U.S. bank. Such certificates are traded on American stock exchanges.
Mutual Funds:
- It is an investment vehicle consisting of a stock portfolio, bonds, or other securities. Mutual funds provide access to diversification and a well-managed portfolio for investors.
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