International Finance

Step 1: Differentiate between types of Depository Receipts. A Depository Receipt (DR) allows investors to hold shares in foreign companies. Step 2: Define ADR and GDR. American Depository Receipt (ADR) is a DR issued by a U.S. bank representing a specified number of shares in a foreign stock that is traded on a U.S. stock exchange. Global Depository Receipt (GDR) is a similar instrument but is typically traded in Europe or on multiple international exchanges. Step 3: Apply the definition to the question. Since the question specifies the DR is traded in the USA, the correct term is American Depository Receipt.

Step 1: Differentiate between types of Depository Receipts. A Depository Receipt (DR) allows investors to hold shares in foreign companies. Step 2: Define ADR and GDR. American Depository Receipt (ADR) is a DR issued by a U.S. bank representing a specified number of shares in a foreign stock that is traded on a U.S. stock exchange. Global Depository Receipt (GDR) is a similar instrument but is typically traded in Europe or on multiple international exchanges. Step 3: Apply the definition to the question. Since the question specifies the DR is traded in the USA, the correct term is American Depository Receipt.