Involuntary delistings occur when a company fails to maintain sufficient financial their stock is remov from the Nasdaq or NYSE for over-the-counter on the Pink Sheets. There can also be voluntary delistings. Sometimes foreign companies elect to abandon their listings in the U.S. or another foreign country due to lack of investor interest. the cost and effort of adhering to stock exchange regulations 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.
Non-compliance and starts trading
the former ADR shares would normally email list move to the . 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 be able to exercise their rights in a foreign 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.
American shareholders may not easily
That is to be expect. as the S&P 500 was Mobile 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. As such. their products and brands resonate with investors across the globe.
