Q.State any three features of American Deposit Receipt.

An ADR is a dollar-denominated negotiable receipt issued by a US depository bank, representing shares of a foreign company and traded on US stock exchanges, that lets a foreign firm raise funds in the USA.

An American Depository Receipt (ADR) is a source of international finance in the TN HSC Class-11 Commerce syllabus.

Three features of an ADR:

1. Issued in the USA and denominated in US dollars — it is issued by an American depository bank and its value is expressed in US dollars, so US investors deal in a familiar currency.
2. Represents foreign company shares and traded on US exchanges — each ADR represents a fixed number of shares of a non-US (foreign) company, and it is bought and sold on American stock exchanges just like any US share. …