Week 8 International Corporate Finance Flashcards
What is an American depository receipt? ADR (or Global
Depository receipt)
A security issued in the US that represent shares of a foreign equity allowing that equity to be traded in the US.
Two types:
Company sponsored, listed on exchange
Unsponsored held by the investment bank that makes a market in ADR
What is the Cross rate?
The implicit exchange rate between two currencies when both are quoted in some third currency.
What are Foreign Bonds?
Are issued in a single country and usually denominated in that country’s currency
What is an exchange rate?
The price of one country’s currency expressed in terms of another country’s currency
What is a Eurobond?
A bond issued in multiple countries but denominated in a single currency, usually the issuer’s home currency
