This amount is called the dividend, and the company declares it as per its financial performance. From the day you buy the shares, you are a shareholder and entitled to receive a portion of the profit of the company. If you buy the shares of a company, you become the owner of the company in the proportion of the percentage of the purchased shares. What are Shares?Ī share indicates a unit of ownership of the particular company. But first, let’s understand a little about shares and how you become a shareholder. This blog will help you understand what an American Depository Receipt is and how US citizens use it to hedge against their local investments and get international exposure along the way. Investors in the United States leverage this technique of investing in foreign stocks through a financial instrument called American Depository Receipt (ADR). As the international market does not get affected by a local market, it allows investors to be profitable even if their local stock market is going through a downtrend. Furthermore, the main idea behind investing in foreign stocks is the hedging factor. This process has allowed investors to have international exposure and invest in global companies that are one of the biggest in the world. Now, if you are an investor, you can look towards investing in foreign stocks.įor example, if you are a citizen of India, you can invest in the stocks of Apple or Google, using the same process as you do to buy Indian stocks. With the advent of digital technologies, investing in the stock market has gone beyond geographical barriers. Investors worldwide scout for companies and their stocks that can give them good returns to achieve their financial goals. What is Dematerialization & It's Process.Difference Between Demat and Trading Account.Documents Required to Open a Demat Account.Aims, Objectives and Importance of Demat Account.What is the Sub-broker Program of IIFL?.
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