International Markets and Foreign Securities

Foreign securities expose investors to opportunities outside the domestic market, but they also introduce market-structure, disclosure, and currency considerations that do not arise in purely domestic investing. The Series 7 tests how foreign products are packaged for U.S. investors and how global benchmarks affect suitability discussions.

This chapter covers ADRs, foreign exchange and currency risk, and the major international indices and exchanges that shape how investors evaluate foreign markets.

In this section

• American Depositary Receipts
  Learn how ADRs give U.S. investors access to foreign equities and the risks that remain.
• Foreign Exchange and Currency Risk
  See how exchange-rate movements affect returns and how investors hedge currency exposure.
• Global Market Indices
  Review major international exchanges and indices used as benchmarks for foreign markets.