Are there special brokerages for that? Or what?
Please elaborate
- trade stocks in foreign markets?
- Are ETF’s which invest solely in foreign stocks appropriate for a Roth IRA? Are there any adverse tax effects
- Stock markets: What are good stocks to invest in?
- With about $5,000 to invest, should I go with stocks, real estate, or foreign currency.And how do I start?
- how can I invest on line in foreign stocks listed on foreign exchanges?
- is it better to invest in foreign stocks since us economy is getting worst?
- How can someone living in the US buy foreign stocks in foreign markets directly? (Not ADRs)?
- How do I invest in foreign stock markets? Like the BSE(Bombay Stock Exchange)?
- How do you invest in foreign currency denominated stocks?
- how to buy stocks in foreign markets before the american bell?
- Is it possible to invest in foreign stocks if you live in the United States?
- How do I invest in some foreign stocks?
- What is the best, secured and cheapest way to invest on foreign stocks overseas (Europe, Asia, …etc)?
- Are Some Foreign Stocks A Better Bet To Invest In From Now On?
- Stock Market Secrets – How to Invest In Foreign Markets
Tom Z
March 6, 2010 at 8:35 pm
At least one way to do it is through an American Depositary Receipt – ADR
An ADR is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.
This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on either the NYSE, AMEX or Nasdaq.
There are also International Depository Receipts
An IDR is a negotiable, bank-issued certificate representing ownership of stock securities by an investor outside the country of origin. It is the non-U.S. equivalent of an American Depositary Receipt (ADR).
Kevin S
March 6, 2010 at 8:52 pm
No need for an ADR. Certain brokerages like etrade and interactivebrokers will allow you to do that. Check out their sites to see their updated lists of exchanges.