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Trading Ideas

Using American Depositary Shares to Access Foreign Markets

Want to open your investment portfolio up to holdings from outside the U.S.? Foreign companies aren’t always accessible through U.S. exchanges, which means investors need another option. That option is American depositary shares. These shares give you access to equity in foreign companies, to diversify your portfolio and capitalize on the momentum of other markets. Moreover, they bring the liquidity of U.S. capital markets to foreign companies looking for investors.
ADSs function the same as domestic stocks, but carry slightly different implications for investors. On the surface, the process of investing in them is similar. Here’s what you need to …read more […]