--%>
Assignment Help - homework help

International portfolio for buying depository receipts

Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?

E

Expert

Verified

Depository receipt is purchased on the domestic exchange of the investor. It offers package of primary foreign security which is priced in the investor’s local currency and in the trading range which is typical for investor’s marketplace. Investor may purchase receipt of depository directly from his domestic broker, instead of having to deal with an overseas broker and the requirement of obtaining foreign funds in order to make foreign stock purchase.  Moreover, dividends are received in local currency than in foreign funds which would required to be converted in the local currency.

   Related Questions in Financial Accounting

  • Q : Challenges of long distance relationship

    My friend is in a new long distance relationship. My friend wants to ask to identify the challenges or difficulties of long-distance romantic relationships and explain communication strategies for coping with these challenges. The res

    		•
  • Q : Credit Claims How to handle the Credit

    How to handle the Credit Claims?

    		•
  • Q : Bretton Woods’s system programmed to

    Comment over the below proposition: “One can say that Bretton Woods’s system was programmed to the eventual demise”. 

    		•
  • Q : Methods handling translation gains and

    How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

    		•
  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

    		•
  • Q : Meaning of drawing What is the meaning

    What is the meaning of drawing in financial accounting?

    		•
  • Q : Comprehensive Problem in Accounting

    Accounting Comprehensive Problem The case involves one accounting cycle (regular journal entries, adjusting journal entries, preparing financial statements,

    		•
  • Q : Accounting estimate Normal 0 false

    Normal 0

  • Q : Human race in our modern world Here are

    Here are two papers addressed to the in-class essay from the previous class. Study them in the context of the exact wording of the assignment and take some notes that will enable you to refer to specific features of the two papers when talking about their relative qua

    		•
  • Q : Cost of accidents to an employer

    Discuss the cost of accidents to an employer in from a perspective of why prevention is better than cure ?

    		•