Capital market....................

Business & Finance
Tutor: None Selected Time limit: 1 Day

Enumeration

1-3 Risks of investing internationally

Nov 27th, 2014
The Risks of investing internationally are:
1.Transaction Costs

 The biggest barriers of investing in international markets are the transaction costs. Although we live in a relatively globalized and connected world, transactions costs can still vary greatly depending on which foreign market you are investing in. Brokerage commissions are almost always higher in international markets compared to domestic rates.
2.Currency Risks

 When investing directly in a foreign market, you have to exchange your domestic currency (USD for U.S. investors) into a foreign currency at the current exchange rate in order to purchase the foreign stock.Currency rates vary in different countries and a big risk for investors.

3.Liquidity Risks

Liquidity risk is the risk of not being able to sell your stock quickly enough once a sell order is entered.

Nov 27th, 2014

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Nov 27th, 2014
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