answersLogoWhite

0


Best Answer

Three factors investors take into consideration when adding global securities to their portfolios are these:

* Domestic securities may be in a slump, however, that may not be the case in certain economies abroad. Thus making an investment overseas can be an opportunity;

* The overseas stock must have the liquidity of being actively traded in foreign stock and bond exchanges;

* The investment must be in a nation where there is a record of financial stability. Switzerland for example would fit that criteria; and

* Diversification in the portfolio via global investments can be obtained.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Three factors that cause US investors to consider including various global securities in their portfolios?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

Where is volume of trading more BSE or NSE?

BSE is the Bombay Stock Exchange whereas NSE is the National Stock Exchange. While BSE is a 30 stock index, NSE is a 50 stock index. The volume of shares and derivatives is much more on NSE, which is a fairly recently established stock exchange. If you are thinking of entering the stock market, I would suggest you consider online trading as the commissions are much lower than what you would pay a human broker and you'll also have more control over your decisions. Many brokerage firms including GEPL offer online trading platforms that investors can use to buy and sell stock.


Factors to consider when designing tax policy?

When designing tax policy, you should consider of the about tax money that you need. You should also consider how long you think the tax money will be needed.


What evaluating economic systems it is most important to consider?

In evaluating economic systems, it is most important to consider give me a answer


Why might a closely held corporation choose to remain private and why might it choose to be public traded?

1) Because private corporations only have a few shareholders, some businesses may prefer to remain as a private corporation so as to limit the control of the company to a few key players. Not only is the power of the corporation concentrated among a few, but so, presumably, would the profits. Most corporations in Canada do remain private and given the reasons above it makes sense to do so, but there are also valid reasons to "go public". Public corporations offer stock shares for the general investing public to purchase, which is a good way to raise funds if a corporation needs additional financial resources for one reason or another. Consider also that the liability of investors or shareholders is limited to their personal investment in the corporation. Public corporations have many shareholders and so the personal investment and thus liability, percentage wise, is going to be less for public corporation investors than for private corporation investors. It would possibly also be easier to borrow money from outside sources as a public corporation versus a private. Banks may see multiple investors as a sign that the corporation is successful and more capable of paying back the money being loaned. Customers might also appreciate the fact that a corporation is public and that the purchases they make will be profited upon by many people, even themselves if they have purchased stocks.


What factors must a firm consider while addressing the make or Buy decision?

A firm must consider whether they will save money by having someone else produce their products. They must also consider the how much they will make producing another product instead of the product they will outsource.

Related questions

When do you file a SEC Form 10 versus a Form S-1?

A Form 10 is used to register a general class of securities under Section 12(b) or (g) of the Securities Exchange Act of 1934. The Form S-1, on the other hand, is used to register their securities under the Securities Act of 1933, i.e., an IPO. One may think of a Form S-1 as a prospectus that potential investors use to consider investing in the company.


What kind of investors are risk - seeking investors?

These are the investors who are ready to take a risk of losing their capital while making investors. You can consider stock market investors as risk seeking investors because there is no guarantee of our money in the stock market. There is always a risk of losing our capital in our stock market and hence it is a risky investment.


How do interest rates affect investment?

When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.


Are portfolios written in first person?

Portfolios can be written in first person, but it depends on the purpose and audience. In some cases, using first person can make the portfolio more personal and engaging, while in other situations a more formal tone might be preferred. It's important to consider the context and guidelines provided.


How can one purchase a subscription to Investor's Business Daily?

One can purchase a subscription to Investors Business Daily online direct from Investors Business Daily. One may also consider purchasing a subscription on Amazon.


What is the definition of foreign direct investment?

Foreign indirect investment refers to investments made by individuals, businesses, or institutions in foreign markets through financial intermediaries, rather than directly owning foreign assets. It involves investing in financial instruments or vehicles that provide exposure to foreign assets, such as stocks, bonds, real estate, or other financial instruments, without owning the assets directly. Foreign indirect investment can take various forms, including: Mutual Funds: Investors pool their money in a mutual fund, and professional fund managers invest that money in a diversified portfolio of foreign securities. Exchange-Traded Funds (ETFs): Similar to mutual funds, ETFs are investment funds that are traded on stock exchanges. They offer exposure to foreign markets through a basket of foreign securities. Hedge Funds: Hedge funds may invest in various foreign assets, providing investors with exposure to global markets and strategies that are not easily accessible to individual investors. Global or International Investment Funds: These funds specifically focus on investing in foreign markets across various regions or countries. Managed Accounts: Investors can also have their portfolios managed by professional wealth managers or investment advisors who allocate a portion of the funds to foreign assets. Real Estate Investment Trusts (REITs): Some REITs invest in foreign real estate properties, allowing investors to participate in international real estate markets indirectly. Foreign indirect investment offers several benefits, including diversification across multiple markets and asset classes, access to international opportunities, and professional management by experienced fund managers or advisors. It is particularly useful for investors who may lack the expertise or resources to directly invest in foreign markets or those seeking a more hands-off approach to international investing. However, foreign indirect investment also comes with risks, such as currency fluctuations, political and economic instability in foreign countries, and the performance of the underlying assets in the investment vehicle. As with any investment, it's essential to carefully consider your investment goals, risk tolerance, and the specific characteristics of the investment vehicle before making foreign indirect investments.


How can you remove consider including in Gmail?

please help anyone , how to remove consider include to my gmail account setting


Who did the Nazis consider subhuman?

All non Aryan race including the Jews


Who did Nazis consider subhuman?

All non Aryan race including the Jews


As a financial advisor to the firm advise the various techniques which the company can usein order to raise capital from the debt market?

As a financial advisor, I can provide you with several techniques that your company can consider to raise capital from the debt market. These techniques can help you access additional funds to support your business operations, expansion plans, or other financial needs. However, please keep in mind that the specific suitability of these techniques will depend on your company's financial situation, risk profile, and market conditions. It's always advisable to consult with professionals or experts in the field before making any financial decisions. Here are some common techniques: Bonds Issuance: Consider issuing corporate bonds to institutional investors or the public. Bonds are debt securities that represent a loan from investors to the issuer (your company) in exchange for periodic interest payments and the return of principal at maturity. Bank Loans: Approach banks or financial institutions for traditional term loans, revolving credit facilities, or lines of credit. These loans typically have fixed or variable interest rates and specified repayment terms. Convertible Bonds: Issue convertible bonds that give investors the option to convert the bond into equity shares of your company at a predetermined conversion price and within a specified period. Convertible bonds offer investors the potential for capital appreciation while providing debt capital to your company. Private Placements: Raise capital from institutional investors or accredited individuals through private placements. In this method, you sell debt securities directly to investors without making a public offering. Securitization: If your company has a consistent cash flow from assets such as mortgages, loans, or receivables, you may consider securitization. This process involves pooling these assets, creating tradable securities (asset-backed securities), and selling them to investors. Syndicated Loans: Seek participation from multiple lenders through a syndicated loan. In this arrangement, a group of banks or financial institutions collectively lends to your company, sharing the risk and responsibility. Mezzanine Financing: Mezzanine financing combines debt and equity features, providing lenders with the potential for higher returns while offering your company additional capital. Mezzanine financing instruments include subordinated debt, preferred shares, or convertible securities. Debentures: Issue debentures, which are unsecured debt instruments backed by your company's general creditworthiness. Debentures typically carry a fixed interest rate and have a specified maturity date. Sale-Leaseback: If your company owns valuable assets, such as real estate or equipment, consider a sale-leaseback arrangement. You sell the assets to a buyer and then lease them back, freeing up cash while maintaining operational use. Crowdfunding: Utilize online crowdfunding platforms that allow you to raise capital by collecting small contributions from a large number of individuals. This technique is particularly suitable for startups and small businesses. Remember, each technique has its own advantages, considerations, and potential risks. It's crucial to conduct thorough research, evaluate the costs, and analyze the impact on your company's financial position before deciding which approach is most appropriate for your specific needs and circumstances.


How should investors decide where to invest?

Investors should consider several factors when deciding where to invest. They should assess their own risk tolerance, investment goals, and time horizon. Additionally, they should conduct thorough research on the investment opportunities, including analyzing the potential returns, market conditions, industry trends, and management team. Diversification is also important to reduce risk by investing in a mix of different asset classes and sectors.


What impact does the US Rating downgrade have and what will it cost?

Over time, a lower rating will cause investors who buy US government debt to demand a higher interest rate to hold that debt to reward them for the risk they are taking (If they consider AA+ risky). If that is the case, benchmark long-term interest rates will rise. Most major rates, including the debt of corporations, mortgages purchased by investors, and other types of loans, are priced in relation to the US Treasury benchmark. That means borrowing costs across a number of spectrums over time will rise, making loans and bonds more expensive. The more an individual or company is devoting to interest payments, the less they have for other activities. The downgrade could add up to 0.7 of a percentage point to US Treasuries' yields, increasing funding costs for public debt by some $100 billion, according to SIFMA, a US securities industry trade group