Bonds or stocks that enjoy a ready market on the principal securities exchanges of various nations, known as "internationals." The term also refers to bonds and stocks whose interest or dividend is payable in the financial centers of two or more countries.
By means of the arrangements making possible AMERICAN DEPOSITARY RECEIPTS, American shares, and New York shares, an increased number of foreign equities are traded on the New York Stock Exchange, American Stock Exchange, and the over-the-counter markets in the U.S., in addition to regularly listed shares of foreign companies. Also on the NYSE bond list, but not classified as foreign, are Eurodollar bonds, which are obligations of foreign subsidiaries of American corporations sold abroad but guaranteed by the parent company.
The American Stock Exchange has an even larger number of foreign stocks traded, particularly a large number of Canadian issues.
Where exchange restrictions do not interfere, "internationals" traded on more than one market may be subjected to arbitrage transactions, allowing for foreign exchange, commissions, and other applicable charges where price differentials justify. Such trading, however, is highly specialized and requires intimate knowledge of the markets concerned and their practices.
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