Investing in US markets

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30. Conclusion

The preceding sections of this course have outlined some of the differences between investing at home and investing in the US through a dollar dealing account with a broker.

It has also looked at where to find the information you need to make good investment decisions and at the much broader range of investment choices that the US market offers.

Deciding whether to take the plunge and invest in the US is a matter of balancing some pluses and minuses.

The pluses are:

• Big actively traded markets
• Bigger choice of investments, including bonds, options and mutual funds
• Some well-known companies to invest in
• Ready availability of information for investment decision-making.

The minuses are:

• The difficulty of getting a feel for companies outside your home market
• The risk that currency movements might deplete your profits
• Time differences.

Most private investors feel uncomfortable investing outside the UK, but on balance the positives probably outweigh the negatives. However, as an individual you need to consider what's right for you. Hopefully this course will have shown that it does not necessarily entail greater risk and, arguably, is an essential part of risk reduction.

You have now completed the course. To test your knowledge, take the Assessment test.

1. Diversification 2. Opportunity 3. Special features of the US market 4. You are already investing abroad! 5. Opening an account to deal in US securities 6. Inputting orders 7. Cash management 8. Currency factors 9. Tax 10. Trading on margin 11. Short selling 12. Types of investment - introduction 13. Shares (common stocks) 14. Indices 15. Bonds 16. Offshore mutual funds 17. Exchange-traded funds 18. ADRs 19. Options 20. Researching US companies - the basics 21. National newspapers 22. Regional newspapers and specialist magazines 23. Business TV 24. Company annual reports 25. Corporate web sites 26. EDGAR 27. Financial portals 28. Broker research 29. Charts 30. Conclusion

• Investing in Latin America