Question

Match the 'Source of Owner's Funds' given under 'A' with the suitable

statements under 'B'. [3]

A B

(i) Indian Depository Receipts (a) Depository receipts issued by a company in

USA.

(ii) Preference Shares (b) Such shares have voting rights in proportion to

the shares held by shareholders.

(iii) American Depository Receipts (c) Instrument issued abroad by a company to raise

funds in some foreign stock exchange

(iv) Equity Shares (d) Part of profits which is kept as reserve for use

in the future.​

Answer 1

Answer:

(DR)?

A depositary receipt (DR) is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. The depositary receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market.

A depositary receipt, which was originally a physical certificate, allows investors to hold shares in the equity of other countries. One of the most common types of DRs is the American depositary receipt (ADR), which has been offering companies, investors, and traders global investment opportunities since the 1920s.