International Investing

AAA

DEFINITION of 'International Investing'

The strategy of selecting globally-based investment instruments as part of an investment portfolio. International investing includes such investment vehicles as mutual funds, American Depository Receipts, exchange-traded funds (ETFs) or direct investments in foreign markets. People often invest internationally for diversification, to spread the investment risk among foreign companies and markets; and for growth, to take advantage of emerging markets.

INVESTOPEDIA EXPLAINS 'International Investing'

International investments can be included in an investment portfolio to provide diversification and growth opportunities. All types of investments involve risk, and international investing may present special risks, including:
-Fluctuations in currency exchange rates
-Changes in market value
-Significant political, economic and social events
-Low liquidity
-Less access to important information
-Foreign legal remedies
-Varying market operations and procedures

RELATED TERMS
  1. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  2. Investing

    The act of committing money or capital to an endeavor (a business, ...
  3. Investment

    An asset or item that is purchased with the hope that it will ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. International Organization Of Securities ...

    A global cooperative of securities regulatory agencies that aims ...
  6. Foreign remittance

Related Articles
  1. Broadening Your Portfolio's Borders
    Investing Basics

    Broadening Your Portfolio's Borders

  2. Evaluating Country Risk For International ...
    Options & Futures

    Evaluating Country Risk For International ...

  3. Getting Into International Investing ...
    Mutual Funds & ETFs

    Getting Into International Investing ...

  4. Is Biased Investing Holding You Back?
    Mutual Funds & ETFs

    Is Biased Investing Holding You Back?

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center