In: Finance
Level II ADRs are:
a. |
those that are listed on a U.S. Exchange & can raise new money in U.S. |
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b. |
private placements by foreign firms in U.S. under Rule 144a |
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c. |
none of the other answers |
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d. |
those that are listed on a U.S. Exchange and cannot raise new money in U.S. |
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e. |
those that are not allowed to be listed on a U.S. Exchange |
d.those that are listed on a U.S Exchange and cannot raise new money in U.S
ADR (American depository receipts) refers to certificate for shares of the foriegn company shares held in a US bank and denominated in dollars.They maybe Level I issue Level II issue or Level III issue.Level II ADR issue is allowed to be listed in US stock exchange but are not allowed to raise capital.For raising money they need to be level III 3 ADR issue
Other options explained
a.those that are listed on a U.S. Exchange & can raise new money in U.S.
False since they cannot raise new money .
b.private placements by foreign firms in U.S. under Rule 144a
False.ADR (American depository receipts) refers to certificate for shares of the foreign company shares held in A US Bank and denominated in dollars.
c.none of the other answers
false.Since option d is the right one
e.those that are not allowed to be listed on a U.S. Exchange
False Since Level II ADR issue is allowed to be listed in US stock exchange but are not allowed to raise capital