Q99
ADR/GDR can be issued
A.
only by listed companies
AnswerB.
by listed or unlisted companies
C.
only by companies listed on BSE
D.
none of the above
Answer: Option A
Solution
Answer: Option A
Solution:
ADR/GDR can be issued only by listed companies. With the help of ADR, foreign companies can trade in US stock market, through various bank branches. On the other hand, GDR helps foreign companies to trade in any country's stock market other than the US stock market, through ODB's branches. ADR is issued in America while GDR is issued in Europe.