Instead of buying foreign stocks overseas, investors wishing to diversify internationally can buy foreign equities traded in the United States in the form of

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American Depository Receipts (ADRs) are negotiable certificates issued by a US bank representing a specified number of shares (or fractions of a share) of a foreign company’s stock. ADRs trade on US exchanges and can be bought and sold just like regular US stocks. This allows investors to diversify internationally without the added complexities of buying foreign stocks directly on overseas exchanges. ADRs enable investors to invest in foreign companies without worrying about currency conversions, non-US accounting practices, or foreign market regulations.

Instead of Buying Foreign Stocks Overseas, Investors Wishing to Diversify