What are stocks from companies located entirely outside the US referred to as?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

Stocks from companies located entirely outside the United States are referred to as international stocks. This terminology encompasses shares from businesses that are traded on foreign exchanges, highlighting the global nature of investment opportunities.

International stocks provide investors with exposure to different economies and industries, allowing for diversification within their portfolios. They can include both developed markets (such as stocks from Europe and Japan) and emerging markets (such as those from Brazil and India), but the term specifically identifies stocks outside of the US.

Domestic stocks, on the other hand, are those from companies based within the United States. Emerging market stocks pertain specifically to shares from developing countries that have potential for growth, but this does not encompass all international investments. Blue-chip stocks refer to shares from well-established, financially sound companies that have a history of reliable performance, which can be both domestic and international but does not apply to all foreign stocks.

Thus, the classification of stocks as international is essential for understanding investment strategies that span beyond national borders.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy