Advantages That the American Depository Receipts (ADRs) Have Over Investing

Multiple Choice

Advantages that the American Depository Receipts (ADRs) have over investing in actual shares of a foreign stock include all but the following

A) ADRs are an effective barrier to foreign currency risk.
B) Unlike direct foreign stock, ADRs have financial statements presented in a GAAP format.
C) Dividends are paid in dollars and easier to collect than actual shares of foreign stock.
D) ADRs are more liquid and less expensive than buying foreign stock directly.