Seriess 6 unit 1

Which of the following is not a characteristic of American depositary receipts (ADRs)?

Dividends are declared in the foreign currency, so exchange rate, or currency, risk is completely eliminated.

ADRs are used to facilitate

Domestic trading of foreign securities

An employee is offered a nonqualified stock option with an exercise price of $20 per share. If the option is exercised when the current market value of the stock is $30, the employee

In the case of NSOs, the difference between the exercise (or strike) price and the current market value is considered salary to the employee.

Investing in emerging market stocks is least likely to expose your client to which of the following risks?

Interest Rate

Which of the following sell transactions is not subject to the holding period restriction specified in SEC Rule 144?

Stock acquired on the NYSE by a corporate affiliate

The date that determines which shareholders are eligible to vote is A)

the record date.