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Basic Question 3 of 9

Level I ADRs ______

I. are traded in the over-the-counter (OTC) market.
II. can be offered to certain qualified institutional buyers only.
III. are issued by brokers, dealers, or depository banks without the involvement of the issuer.
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User Contributed Comments 4

User Comment
Swetha Then why isn't Statement no. II correct ??
alki notice the word only at the end of statement II
joywind ADRs makes the ownership diversified internationally, not the same thing as 'raising capital' which adds more ownership.
johntan1979 III fits the definition of UNsponsored DRs, whereas all ADRs are sponsored.
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Lina

Lina

Learning Outcome Statements

describe methods for investing in non-domestic equity securities

CFA® 2025 Level I Curriculum, Volume 3, Module 4.