Saturday, June 13, 2015

Day 54 - Questions


Day 54 - Depository Receipts ADR, GDR

( Depository Receipts - ADR, GDR )


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1.  Suppose, a company publicly listed in New York Stock Exchange (NYSE) wants to raise money from India. It may list its securities (stocks or equities) in Bombay Stock Exchange (BSE). Now Indian investors can buy the securities in the form of -
a.  Fixed Deposits
b.  Depository Receipts
c.  Bullion
d.  None of the above

2.  Expand ADR
a.  All-India Depository Receipts
b.  American Domestic Receipts
c.  American Depository Receipts
d.  All-India Domestic Receipts

3.  Expand GDR
a.  Global Domestic Reports
b.  Global Depository Receipts
c.  General Depository Receipts
d.  None of the above

4.  Which of the following is/are correct steps for issuance of Depository Receipts?
a.  The shares of the foreign company (which the DR represents) are delivered and deposited with the custodian bank (bank that facilitates the company's DR)
b.  On receipt of the delivery of shares, the custodian bank creates DR and issues to investors in the country
c.  These DRs are then listed and traded in the local stock exchange of the investors' country
d.  All are correct





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