SIE (Securities Industry Essentials) Practice Exam

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What would be the easiest way for Mikey to invest in a new Swedish company?

  1. Direct investment in the Stockholm Stock Exchange

  2. Purchase through an international broker

  3. ADRs

  4. Mutual Funds containing international stocks

The correct answer is: ADRs

Purchasing American Depositary Receipts (ADRs) would be the easiest way for Mikey to invest in a new Swedish company. Direct investment in the Stockholm Stock Exchange would require knowledge of the foreign market and may involve additional fees. Purchasing through an international broker would also involve additional fees and may be more complex compared to ADRs. Finally, mutual funds containing international stocks have a diversified portfolio and may not solely focus on investing in the specific new Swedish company that Mikey is interested in. ADRs would offer a simpler and more direct route for Mikey to invest in the new Swedish company.