Which of the following is an advantage of owning American depositary receipts?
A) The investor has the right to vote at stockholders' meetings.
B) The investor receives preemptive rights should the issuer make an additional stock offering.
C) The investor avoids the currency risk that characterizes many foreign investments.
D) The investor can buy, sell, and receive dividends in U.S. dollars rather than a foreign currency.
Answer: D) The investor can buy, sell, and receive dividends in U.S. dollars rather than a foreign currency.