{"id":25659,"date":"2022-02-05T21:00:00","date_gmt":"2022-02-05T20:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=25659"},"modified":"2022-02-07T09:09:21","modified_gmt":"2022-02-07T08:09:21","slug":"quick-guide-investing-abroad","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/quick-guide-investing-abroad\/","title":{"rendered":"A quick guide to investing abroad"},"content":{"rendered":"
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When you think of ways to manage your wealth, you’ve probably thought of investing in foreign companies, but dismissed it right away because it wasn’t clear to you how to go about it. Investing abroad can be a complicated task. Agent 11Onze Amadeu Vilagin\u00e9s gives us an overview.<\/b><\/h3>\n

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In a globalised world like the one we live in, it is normal that <\/span>more and more people want to invest abroad. And the trend is on the rise<\/b>. It may be that we see potential in a sector that is not very well established in our country, but which, on the other hand, is very important in Germany or the United States, which is why we are interested in it. Unfortunately, not everything is so easy: a process that could be simple, such as buying the shares of a company, in a market that is different from ours can be a challenge full of obstacles.<\/span><\/p>\n

And why is it so complicated, especially for individual investors? For many reasons. The first reason that makes it difficult is <\/span>the commissions<\/b>. \u201cThe most normal thing is that our broker charges us higher commissions for investing abroad than in Catalonia,\u201d the agent argues. In addition, and depending on the country in which we want to invest, we will have to take into account many other factors such as c<\/span>urrency exchange rates, market volatility, legislation and legal security in each country<\/b>, among others.\u00a0<\/span><\/p>\n

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ADRs and GDRs, investment certificates<\/b><\/h3>\n

To solve all these difficulties, ADRs (American Depositary Receipts) are used<\/b>, or their global version, the well-known <\/span>GDRs<\/b> (Global Depositary Receipts). But what are they? \u201cBoth are <\/span>certificates issued by banks that represent the shares of a foreign company<\/b>, but which at the same time are listed on our local stock exchange,\u201d Vilagin\u00e9s explains. In the case of ADRs, on the US stock exchange. And in the case of GDRs, on the stock exchanges of the rest of the world.<\/span><\/p>\n

These certificates make life much easier for investors<\/b>. \u201cIf American investors want to invest in a Chinese company, instead of making life difficult for themselves by investing directly on the Shanghai stock exchange, paying a lot of commissions and being exposed to currency exchange, they can simply buy a Chinese ADR on the New York Stock Exchange,\u201d the agent explains. This would also mean that it would be traded in US dollars.\u00a0<\/span><\/p>\n

However, it is not all advantages. ADRs are still certificates issued by financial institutions and are therefore not exactly shares in the company to be invested in. \u201cThis means that some of them <\/span>do not allow voting at shareholders\u2019 meetings and there may also be liquidity problems <\/b>compared to investing in local companies,\u201d Vilagin\u00e9s warns. It is therefore important to invest very carefully, and always with the advice of an expert. Want to know more about investing abroad? Just watch the video below.<\/span><\/p>\n\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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