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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
Trading Center