In contrast the differences in investing in a US based company versus a foreign company are significant. US based companies get higher valuations and in some ways have less risk. Companies have a greater awareness of SEC and SOX compliance and understand the importance of keeping their investors informed.

Foreign companies have greater risk associated with them but US based investors can usually find companies that are well established, exhibit steady increases in revenues and profits, and provide investment opportunities at substantial discounts to market. The biggest advantage is foreign companies have greater immediate growth potential. The downside, as we have described in length in this series, is if something goes wrong there is little recourse and the SEC is limited in its ability to protect US investors.

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