What are some risks associated with trading foreign securities? ?

Question

What are some risks that you are taking when you choose to invest in stocks from other counties besides the United States ?

For example, how can the U.S. legally force a company to honor any agreements if it is an overseas country out side of the bounds of U.S. law?

Answer 1

well inflation in some countrys but keep in mind investing part of your capital in foriengn stocks in essential for long term sucess because you are diversifing... also the changes in the dollar.. and it depends what industry its in.. and us cant do that!

Answer 2

A foreign gov can simply nationalize a business