Overview of Equity Securities

Question 1

A ____________ is a security that trades like an ordinary share on a
local exchange and represents an economic interest in a foreign company.

Answer 1

depository receipt

Question 2

An _______ is a US dollar- denominated security that

trades like a common share on US exchanges.

Answer 2

American depository receipt (ADR)

Question 3

ROE =

Answer 3

(Net income - preferred dividends) / Book value of equity