How to Research an International Investment Company
Information for investing in an international investment company is not readily available by typing in a keyword in a search engine. This is mainly due to the fact that the term international investment company does not refer to a specific type of entity but could generically mean international investing through foreign stock funds and American Depository Receipts (ADRs).
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Understanding this may be helpful in finding information concerning international investment companies. Many investment companies, based in the United States have funds that invest primarily in foreign and international companies. These funds can technically qualify as “international investment companies” and provide you with some information about the type of investment opportunities that are available to you.
ADRs are shares of beneficial interest or receipt of securities held by a bank in behalf of a foreign company. Companies such as Nestle, Sony and others that are based outside the U.S. offer their stock for trading in the U.S. The ADRs facilitate this trading by allowing the companies to place their shares in a trust that is deposited with a foreign bank with a U.S. branch.
These following steps can help you research information on foreign mutual funds and other investments that hold the stock of foreign companies.
Step 1: Consult an Investment Professional
Consult an investment professional for a list of foreign companies or mutual funds that invest in international companies. This information will give you some insight as to the type of investment opportunities that may be available through foreign investing and give you a starting point for follow-up.
Step 2: Perform a Search of Recommended Companies
With the information provided to you by an investment professional, you can do an online search of the fund or company to learn more about what they do and whether they are a good investment for your portfolio. The type of analysis that is performed on U.S.-based companies is the same for foreign funds and companies. The financial, management and product information should give you insight about the company and a basis for determining the suitability of an international investment.
It is advisable to have a portion of your investments in foreign and international companies. The process for researching these types of investment opportunities is straightforward and simple, understanding however that the terminology used drives the type of search results that you are looking for. Seek professional advice and assistance through a qualified financial adviser or representative in order to gain a better understanding of international investing and the types of international investing opportunities that are available.
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