Question

Yankee stocks A. often trade as ADRs and have higher risks than trading the actual shares....

Yankee stocks

A.

often trade as ADRs and have higher risks than trading the actual shares.
B.

are bank receipts representing a multiple of foreign shares deposited in a U.S. bank.
C.

often trade as ADRs, have lower risks than trading the actual shares, and are bank receipts representing a multiple of foreign shares deposited in a U.S. bank.
D.

often trade as ADRs and have lower risks than trading the actual shares.
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Answer #1

Yankee stocks often trade as ADRs, have lower risks than trading the actual shares, and are bank receipts representing a multiple of foreign shares deposited in a U.S. bank.

Therefore correct answer is option C. often trade as ADRs, have lower risks than trading the actual shares, and are bank receipts representing a multiple of foreign shares deposited in a U.S. bank.

Yankee stocks trades in US market as American Depository Receipts (ADRs) which are like bank receipts. ADRs eliminate some risks, delays, inconveniences and expenses related with trading actual shares. It is an example of cross-listing of company’s share on foreign stock exchange for wider investor base.

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