Question
A negotiable certificate issued by a bank representing
shares in a foreign company traded on a local stock exchange is called?Solution
A depositary receipt (DR) is a negotiable certificate representing shares in a foreign company traded on a local stock exchange. Depositary receipts allow investors to hold equity shares of foreign companies without the need to trade directly on a foreign market. Depositary receipts allow investors to diversify their portfolios by purchasing shares of companies in different markets and economies. Depositary receipts are more convenient and less expensive than purchasing stocks directly in foreign markets.
Principles of Natural Justice are:
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