Entrepreneurs have the opportunity to place a portion of their long-term assets in securities of international financial markets – bonds and stocks. Bonds are long-term securities, shares the same – open-ended. Filed under: Starbucks. Create an investment portfolio allows those funds that consistently and significantly exceed the needs of firms in the current assets, or those that can not be used to purchase long-term real assets. International portfolio investments are mostly not so much by income as an opportunity to provide needed liquidity of the firm. Also, long-term investments allow accumulate funds for their further use for any large-scale investment projects related to the attraction of direct investment. Total income, which is expressed in domestic currency, by investing money funds and foreign stock markets are comprised of three components. This dividend, capital and foreign exchange earnings.

Foreign investors can make investment of money in several ways. One of them – implementation of investments in securities. Thus, the securities of many foreign companies are located in the domestic stock markets. Purchase of securities by investors through banks in when entrepreneurs are brokerage sites on stock exchanges. Another method – the purchase of securities on foreign stock markets where residents are also issuers. However, it is more expensive method in comparison with the above. The third method is the ability to purchase securities investors in the form of depositary receipts for foreign shares. Investing in international markets has some advantages compared with domestic markets.

First, when creating a foreign portfolio arises the possibility of higher returns. Secondly, the risk of losing your investment or part thereof as a result of changes in equity markets greatly reduced. In addition, it is possible to create mutual funds that can be global, international or regional. All these advantages form a more efficient portfolio long-term investment in foreign markets than on domestic ones.