American Shares


DEFINITION of 'American Shares'

A term used outside of the United States to describe the stock of publicly held companies that are based in the United States. Investing in American shares can be especially appealing to residents of small countries who seek broader market exposure than they could achieve by investing only in the stocks of locally based countries. Also, listing on an American exchange gives a company more exposure. The NYSE and Nasdaq represent a large percentage of total world stock market capitalization, even compared to the major exchanges of Tokyo, London, Paris, Germany and Australia.

BREAKING DOWN 'American Shares'

U.S. residents who wish to invest in foreign securities can purchase shares of mutual funds or exchange-traded funds that are country-specific or that have international exposure. They can also purchase shares of specific foreign companies via American depositary receipts. All of these vehicles simplify the process of investing overseas, a process that can be complicated because of differences in regulations and tax laws, and fluctuations in currency values.

  1. American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company ...
  2. Issuer

    A legal entity that develops, registers and sells securities ...
  3. Unsponsored ADR

    An American depositary receipt (ADR) issued by a depositary bank ...
  4. Registration

    1. The process by which a company files required documents with ...
  5. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
  6. American Option

    An option that can be exercised anytime during its life. American ...
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  1. What parties are involved in the creation of an American depositary receipt?

    An American depositary receipt (ADR) is a legal certificate issued by a recognized U.S. bank that represents a specific number ... Read Full Answer >>
  2. How liquid are Vanguard mutual funds?

    The Vanguard mutual fund family is one of the largest and most well-recognized fund family in the financial industry. Its ... Read Full Answer >>
  3. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  4. Does OptionsHouse have mutual funds?

    OptionsHouse has access to some mutual funds, but it depends on the fund in which the investor is looking to buy shares. ... Read Full Answer >>
  5. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  6. How do mutual funds work in India?

    Mutual funds in India work in much the same way as mutual funds in the United States. Like their American counterparts, Indian ... Read Full Answer >>

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