Equity, or common stock, trades on stock markets all around the world. Because o

Question

Equity, or common stock, trades on stock markets all around the world. Because of globalization, the lines between equity markets are being blurred. In many cases, multinational firms sell equity in foreign equity markets. In other words, they sell stock on exchanges outside of their home country. Sony, a Japanese multinational firm, issued stock that trades on the FTSE exchange in London. The statement above is an example of which of the following? A Yankee stock A Euro stock An American Depository Receipt (ADR)

Explanation / Answer

Answer:A Euro stock

Euro stock are those stocks denominated at a currency which is not naive to the country it is issued. So japanese stock issued at Yen but trading in london exchane at pound.

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