Business & Finance Stocks-Mutual-Funds

How to Purchase Foreign Stocks

    • 1). Open and fund an account with an online stock brokerage company, if you do not already have one. Smart Money magazine provides an annual ranking of brokerage firms (see Resources). According to their 2010 broker survey, the top three online brokers were Fidelity, E-Trade and TD Ameritrade.

    • 2). Research foreign stocks that trade in the U.S. through the database at ADR.com. "ADR" stands for American depository receipts. ADRs are certificates for shares of foreign companies held in U.S. banks. You can search the ADR database for specific companies and by country, region and sector.

    • 3). Select the ADRs in which you would like to invest and make a note of their stock symbols and current share prices.

    • 4). Buy shares of your selected ADRs through your online broker's stock trading screen. ADR shares trade exactly the same as any exchange-listed U.S. stock.

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