Question

Which of the following is NOT a common practice for investors in the US to participate...

Which of the following is NOT a common practice for investors in the US to participate in equity markets outside the US?

  1. Using equity swaps
  2. Buying ADRs
  3. Buying exchange traded funds
  4. Buying international index funds
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Answer #1

Answer :- Using equity swaps.

Explanation :- By the following ways, The US investors can invest in equity markets out of United States :-

i). Through purchase of American depositary receipts (ADRs),

ii). By purchasing registered mutual funds (including international index funds / global funds etc.),

iii). By purchasing registered exchange traded funds (ETF) and

iv). Through trading on equity

Accordingly, using equity swap is not any mode of investing in equity markets (out of United States) for US investors.

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