Question

What is the primary purpose of issuing depository receipts (DR)?

a.

Regulating stock prices

b.

Diversification and spread of shareholders' base

c.

Encouraging mergers and acquisitions

d.

Facilitating stock market research

Answer: (b).Diversification and spread of shareholders' base Explanation:One of the basic purposes for the issuance of depository receipts is the diversification and spread of shareholders' base.

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Q. What is the primary purpose of issuing depository receipts (DR)?

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