Jurisdiction and investor protections

They can be delist. Involuntary delistings occur when a company fails to maintain sufficient financial strength. A high enough share price. Or it fails to file requir regulatory paperwork on time. Foreign companies may see the same thing that happens to many american companies; that is to say. Their stock is remov from the nasdaq or nyse for non-compliance and starts trading over-the-counter on the pink sheets. Or investor interest. or reporting requirements (ie – with the sec) in multiple countries. Or for other reasons. For example. In 2019 britain’s bt group decid to delist from the nyse and terminate their adr program. In this case.

To stock exchange regulations

The former adr shares would normally africa email list move to the pink sheets and continue trading there. U.S. Listings of foreign stocks can also disappear following normal corporate actions. Such as takeovers and acquisitions. Note: liquidity often dries up almost entirely for foreign stocks with a pink sheets listing. In addition. American shareholders may not easily  equity that is undergoing bankruptcy or financial restructuring. Does the s&p 500 include foreign stocks? No. It does not. According to a factsheet (.Pdf) publish by s&p dow jones indices. Which operates the index. The s&p 500 holds a 100% portfolio weighting to unit states securities. And. Specifically. Adrs are ineligible to be includ in the index.

Be able to exercise their rights in a foreign

That is to be expect. As the s&p 500 was Marketing List design to serve as a benchmark for the returns of the 500 largest american companies. With that said. Multinational companies bas in the u.S. May have substantial international operations. For example. More than 50% of apple’s (aapl) revenue comes from overseas. So investors who only purchase u.S. Stocks. Or etfs like the popular spdr s&p 500 trust etf (spy). Will still have some international exposure in their portfolio. Examples of foreign stocks a large number of foreign stocks list in the unit states are adrs of companies which are multinationals and have worldwide businesses.

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