Explain the existence and operation of the adr market

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Santos Limited is an Australian corporation listed on the ASX. Santos wishes to raise additional equity in the USA, but is not dual listed on the NYSE. The company's financial advisers suggest the company approach the Bank of New York Mellon to arrange an issue of American depositary receipts (ADR). Explain the existence and operation of the ADR market. Demonstrate in your answer how a foreign company might raise funds in the US capital markets through an ADR issue.

Reference no: EM133001343

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