Which one of the following is not a characteristic of American Depository Receipts (ADRs) ?
The claim that ADRs once sold cannot be re-issued is incorrect. ADRs can be traded, and depositing eligible underlying shares can lead to the creation of ADRs under the…
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Which one of the following is not a characteristic of American Depository Receipts (ADRs) ?
Answer and explanation
Correct answer D
The claim that ADRs once sold cannot be re-issued is incorrect. ADRs can be traded, and depositing eligible underlying shares can lead to the creation of ADRs under the deposit arrangement; a previous sale does not impose a permanent bar.
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Madhya Pradesh SET (MP SET)