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Level II ADRs are: a. those that are listed on a U.S. Exchange & can raise...

Level II ADRs are: a. those that are listed on a U.S. Exchange & can raise new money in U.S. b. those that are listed on a U.S. Exchange and cannot raise new money in U.S. c. private placements by foreign firms in U.S. under Rule 144a d. none of the other answers e. those that are not allowed to be listed on a U.S. Exchange

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Answer: Option b) those that are listed on a U.S. Exchange and cannot raise new money in U.S.

An American Depository Receipt (ADR) is a negotiable certificate issued by a U.S depository bank representing a specified no. of shares in a foreign company's stock. ADRs trade in market in U.S. as any stock would trade. Level II ADRs are those that are listed on a U.S. Exchange and cannot raise new money in U.S. Level II ADRs can be used to establish a trading presence on a stock exchange but they can’t be used to raise capital. Level II ADRs get higher visibility and trading volume and have more requirements from the SEC.

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