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Question

A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an International Bank. This certificate is called:

A Certificate of deposit Correct Answer Incorrect Answer
B American Depository Receipts Correct Answer Incorrect Answer
C Global depository receipts Correct Answer Incorrect Answer
D Floating rate Notes Correct Answer Incorrect Answer
E None of the above. Correct Answer Incorrect Answer

Solution

Global Depository receipt refers to the name given for the depository receipt where the security certificate is issued by financial intermediaries such as a depository bank that purchases the securities of a foreign country, then creates a bank certificate that consists of such shares and finally sells them in the stock exchange.

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