Which of the following is NOT a disadvantage of ADRs?
A)Foreign currency exchange risk
B)Financial statements written in a foreign language
C)Information lag
D)Less frequent reporting of financial results

Question

Quizplus · Accepted Answer

ADRs are designed to minimize the disadvantages of investing in foreign stocks by allowing investors to trade securities of foreign companies in the US, so financial statements are usually translated into English. The other options, foreign currency exchange risk, information lag, and less frequent reporting of financial results, are potential disadvantages of ADRs.

Which of the Following Is NOT a Disadvantage of ADRs