Answer: like ordinary shares on the investors' local exchanges.

## Explanation Depositary receipts (DRs) are negotiable certificates that represent ownership in shares of a foreign company. They are designed to facilitate trading of foreign securities in local markets. The key characteristics are: 1. **Trading Location**: DRs trade on investors' local exchanges, not on the company's home exchange. 2. **Currency**: They trade in the local currency of the investors' market, not in the company's home currency. 3. **Trading Mechanics**: They trade like ordinary shares on the local exchange where they are listed. **Analysis of Options**: - **Option A**: Correct. DRs trade like ordinary shares on investors' local exchanges, making them accessible to local investors. - **Option B**: Incorrect. DRs do not trade on the company's local exchange; they trade on foreign exchanges. - **Option C**: Incorrect. DRs trade in the local currency of the investors' market, not in the company's currency. **Key Concept**: Depositary receipts allow investors to invest in foreign companies without dealing with foreign exchange transactions, foreign market regulations, or cross-border settlement issues. They are priced in the local currency and settle according to local market conventions.

Author: LeetQuiz .