The certificate, transfer, and settlement practices for ADRs are identical to those for U.S. securities. U.S. investors often prefer ADRs to direct purchase of foreign shares because of the ready availability of price information, lower transaction costs, and timely dividend distribution. Often it is a full hedge, and therefore, a risk-free transaction.
Arbs play an important role in keeping markets liquid and efficient.
The economic resources of an entity consisting of money, land, buildings, machinery, and other property and property rights. This price refers to the current amount required to buy a given security. Average Maturity - The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life. Balanced funds can change their asset allocation according to market conditions.