Question

What is the primary purpose of issuing depository receipts (DRs) by a company?

a.

To regulate domestic stock exchanges

b.

To facilitate trading of commodities

c.

To gain recognition of corporate entity and activities in the international market

d.

To minimize currency risks

Answer: (c).To gain recognition of corporate entity and activities in the international market Explanation:Issuing depository receipts helps a company gain recognition in the international market.

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Q. What is the primary purpose of issuing depository receipts (DRs) by a company?

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