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What is the advantage of investing in American Depository Receipts (ADRs)?
  • a)
    Access to foreign companies and potential for higher returns
  • b)
    Simplified tax calculations compared to investing directly in foreign markets
  • c)
    Lower transaction costs and higher liquidity
  • d)
    Protection against currency fluctuations and exchange rate risk
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the advantage of investing in American Depository Receipts (AD...
One of the advantages of investing in American Depository Receipts (ADRs) is gaining access to foreign companies and the potential for higher returns. ADRs allow U.S. investors to diversify their portfolio by investing in shares of foreign companies, which may offer different growth opportunities and potential for profitability.
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What is the advantage of investing in American Depository Receipts (ADRs)?a)Access to foreign companies and potential for higher returnsb)Simplified tax calculations compared to investing directly in foreign marketsc)Lower transaction costs and higher liquidityd)Protection against currency fluctuations and exchange rate riskCorrect answer is option 'A'. Can you explain this answer?
Question Description
What is the advantage of investing in American Depository Receipts (ADRs)?a)Access to foreign companies and potential for higher returnsb)Simplified tax calculations compared to investing directly in foreign marketsc)Lower transaction costs and higher liquidityd)Protection against currency fluctuations and exchange rate riskCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the advantage of investing in American Depository Receipts (ADRs)?a)Access to foreign companies and potential for higher returnsb)Simplified tax calculations compared to investing directly in foreign marketsc)Lower transaction costs and higher liquidityd)Protection against currency fluctuations and exchange rate riskCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the advantage of investing in American Depository Receipts (ADRs)?a)Access to foreign companies and potential for higher returnsb)Simplified tax calculations compared to investing directly in foreign marketsc)Lower transaction costs and higher liquidityd)Protection against currency fluctuations and exchange rate riskCorrect answer is option 'A'. Can you explain this answer?.
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