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Foreign Stock Market

Isaac Said:

Can foreign companies get there stock listed on US market without issuing ADR?

We Answered:

I can answer part of your question. Yes, foreign shares can be traded in the U S without having ADRs. I know because I own one.

The main advantage of an ADR is that it is traded directly in U S dollars. Directly listed shares go through a currency translation process that can be kind of messy.

Shares that are not ADRs are traded on the pink sheets along with many that are ADRs. Pink sheet listed companies are subject to very wide trading spreads between bid and ask prices. Exchange traded ADRs have much narrower spreads.

Justin Said:

Will foreign Investors pull out of the US Stock Market?

We Answered:

Some will "pull out", many will transfer to other stocks, but,the market ,in general, will not be settling down,soon....New money,from,shall we say,less desirable countries, will fill some of the gaps, but,in the long run, America, will pay dearly......

Ellen Said:

connection between rate of foreign currency & indices of stock market of a country ?

We Answered:

You may have made a good observation but there is little empirical evidence to correlate the fall in the rupee and the stock markets..

Having said that, the reason for the fall can be largely associated with the selling by FII, now u must know that when FII sell their stocks they sell rupees and convert them to dollars, that being their primary currency ,

This huge sell off of rupees drives the demand for dollars ultimately pushing the dollar price up against the rupee, unless the RBI intervenes and starts buying rupees to suck the excess liquidity in the system the slide in the rupee is going to continue.

Hope that partly answers ur question!

Gail Said:

What is the relationship between one stock market and another foreign stock market?

We Answered:

This is called arbitrage, when stocks get cheaper
in one market, investors will not buy in another
unless the price is driven down also.
There are of course other reasons, the main one
is that economies are interrelated around the world
and when an economy is sneezing, the neighbor
one is in danger of catching a cold.
Stock markets rise and fall in "sympathy" with
each other, even stock investors can show love ;-)

Charlene Said:

Should Americans worry about foreign part ownership of the NASDAQ stock market?

We Answered:

No. NASDAQ is just a stock market, it doesn't own the stocks itself. We should be far more worried about foreign ownership of American debt.

Sean Said:

What is the roll of FII (Foreign Instituional Investor) in our stock market.?

We Answered:

They have deep pockets and long-term investment plan, more structured approach. So they invest heavily and get the sensex more and more higher. But market for retail investers or Small investers have become very dangerous, due to FII's heavy investments.

Discuss It!