Question about investing in foreign companies

[Phokus]

Say, for example, i buy some stock in toyota (which is listed on the NYSE). Would i be buying stock in the company as a whole or just their american division?

 

[Doggiedog]

They are called ADRs and yes, you are buying into the whole company. NOK for example is the ADR for Nokia.

 

[Phokus]

Originally posted by: Doggiedog
They are called ADRs and yes, you are buying into the whole company. NOK for example is the ADR for Nokia.

Ok thanks... what does ADR stand for?

 

[Doggiedog]

American Depository Receipt

 

[DaveSimmons]

If you want to diversify outside the US you can also buy "worldwide" mutual funds such as Vanguard.com's VEURX and VEIEX index-based funds.

 

[Colt45]

I usually just buy the whole company. entirely. like all the shares.

 

[midnightrat]

best rate of return is to do an overseas funds transfer. I hear you can make as much as 30% of the total value of the transfer. Usually the broker is so appreciative, they throw in a free Ipod