What are American Depository Receipts?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- The depository receipts issued by a company in the USA.
The depository receipts issued by a company in the USA are known as American Depository Receipts. ADRs are bought and sold in American markets, like regular stocks. It is similar to a GDR except that it can be issued only to American citizens and can be listed and traded on a stock exchange of USA.