The custodial bank (located in the home country of the issuer) of an American Depository Receipt

a. Buys and sells the foreign shares based upon their inside information

b. Performs trading outside the U. S. on behalf of the ADR holders

c. Performs trading in the U. S. on behalf of the ADR holders

d. Holds foreign shares on deposit

e. Acts as a broker between U. S. investors and the foreign firm

The correct answer is option (d)

Explanation:

Solution

From the given question, A custodial bank that is located in the home country of the issuer of an American Depository Receipt is described as follows:

Generally, a custodian is a bank or a financial institution or bank that keeps financial securities such as bonds, stocks, gold etc. basically, custodians are involved in having the custody of  shares/securities. They might be some banks who are holding on to this securities.