For US investors gone sour on Apple, buying Samsung is tricky

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Reuters: New York, Jan 24 2013, 23:20 IST
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who purchase these shares in dollars still take on the same risk of currency fluctuations as owning foreign shares in the company's home market.

Even so, there are reasons why small investors might take the risk and buy Samsung over-the-counter shares rather than go to the home market of an overseas company. Some brokerages require a minimum purchase of $5,000 or more to place trades on a foreign market and an investor also has to wait until that foreign market opens.

Investors who want to take smaller positions could consider the over-the-counter shares, said John Wightkin, director of equity research applications at Charles Schwab.

The cost to buy companies listed on the Pink Sheets tends to vary, based on an investor's account size and trading frequency. And investors would not be able to trade those shares on the South Korean market.

Larger investors, meanwhile, might want to opt to buy foreign shares directly in the target company's home market because of the liquidity.

While brokerage houses such as Schwab are expanding services that allow retail investors to trade international stocks directly in local markets, South Korea is typically not among the offerings. Instead, customers must place orders through brokers, meet minimum order sizes and pay additional fees that can include exchange fees, foreign currency fees and local tax withholding. Customers typically cannot trade on margin and must trade during foreign market hours as well.

"If you have a big enough account that they care about you, then it's easier to go with a broker with

... contd.

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