The custodial bank (located in the home country of the issuer) of an American Depository Receipt

Business

2 answers:

Goshia [24]3 years ago

5 0

Answer:

The correct answer is option (d)

Explanation:

Solution

From the given question, A custodial bank that is located in the home country of the issuer of an American Depository Receipt is described as follows:

Generally, a custodian is a bank or a financial institution or bank that keeps financial securities such as bonds, stocks, gold etc. basically, custodians are involved in having the custody of shares/securities. They might be some banks who are holding on to this securities.

Mnenie [13.5K]3 years ago

4 0

Answer: c. Performs trading in the U.S. on behalf of the ADR holders

Explanation:

depository receipt are issued to individuals, investors or companies as a symbol of an ordinary shares to global investor, by keeping the shares under the custody of a 'Domestic Custodian Bank'. Domestic Custodian Bank is a bank that’s specialized in and responsible for safeguarding a firm's or individual's financial assets. This assets are usually traded in domestic market or what is known as local market that is only within the USA stock exchange.

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