Investing abroad

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10. Foreign companies on the London exchange

If you are determined to invest in individual companies rather than countries, first check the London Stock Exchange. There are dozens of foreign companies listed here, including many of the most prestigious blue-chips in the world.

You can get some idea of the range by opening the back pages of the Financial Times and looking under 'Americans', 'Canadians' and 'South Africans'. Many industry sectors also contain a sprinkling of foreigners. For obvious reasons, the number is especially high in the Oil & Gas and Mining sectors.

All of the shares you see listed, and many other foreign equities besides, can be traded in sterling on the London market, just like British shares. If the company or companies you are interested in are quoted here, there is no good reason to purchase them abroad.

But be aware that you will still be exposed to currency risk. Prices are usually pegged in some form or other to an equivalent stock on a foreign exchange. They will therefore fluctuate in line with the relevant currency.

1. Why invest abroad? 2. Risk and reward in foreign investment 3. Custody risk 4. Currency risk 5. UK companies are foreigners too 6. Foreign unit and investment trusts 7. Picking foreign trusts 8. How to make the most of trusts 9. Tracker funds for foreign markets 10. Foreign companies on the London exchange 11. American Depository Receipts 12. Investing in American companies 13. Investing in European companies 14. Investing in Asian companies 15. Investing in other markets 16. Dividends and withholding taxes 17. Markets go global 18. Conclusion

• Mobius on Emerging Markets