Investing Internationally

How to invest in International markets.

Hello there,  Are you a starter in finance, and do you want to know about some interesting fields of finance? Then you are at the right place. In this article we will bring out a very curious topic of International finance where we will be discussing the concept of International Equity Markets. 

In very simple terms, an international equity market refers to the buying and selling of shares in international markets or, simply, in different countries. 

Larger firms often use this method to either diversify their risk portfolio or raise capital from global investors instead of staying dependent on the Domestic clients.

So what are some instruments that we can invest in internationally?

The first one is Equity Shares. That's right, we can buy equity shares of foreign companies and receive Capital gains and dividends on the investment along with the ownership. Example? You can buy some Apple Inc. shares while residing in the UK or India.

Then we have a special freedom case, i.e., American Depository Receipts (ADRs). 
These are special shares of foreign companies managed by US banks and are allowed to trade on US markets without actually being listed there. These make it easier for the US investors to invest in global companies while trading in the US markets.

Similar to the ADRs, we also have GDRs, or the Global Depository Receipts. They are very alike; however, the only difference is that GDRs are traded throughout the world and not just US.  GDRs are commonly listed in European financial markets such as London or Luxembourg.

Lastly, we have ETFs. Exchange Traded Funds (ETFs) are investment funds that contain a group of stocks from different companies and countries. Rathar than buying shares of each company individually, an investor can invest in an ETF and still benefit from the growth of the companies. 

International ETFs provide exposure to global markets in a simple and low-cost manner.

This was just a basic explanation video trying to explain different ways and instruments through which an investor can invest in international stocks. However, do keep an eye on the page for more interesting Finance topics.