American depositary share (ADS)

Investors looking overseas to invest may do so by purchasing ADS or american depositary share. These foreign stocks are quoted in US dollars and it is available on major US stock exchanges such as the NYSE or NASDAQ. The investor is freed from the cross border transaction processes such as currency conversions and other overseas transaction run arounds. However, even if it is directly quoted in US dollars, the final share price always has to deal with foreign currency fluctuations that is not noted physically by the investor.

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