international stock market (5)

before concluding this look at international equity markets ,we take note of the emergence of anew investment vehicle for making such transaction across country borders .As indicated briefly earlier ,Mutual funds have become increasingly important for such purchases (Mutual funds of this international type also have become prominent in bonds ,but we concentrate here on stock funds) These funds collect the savings of small individual investors as well as large institutional investors and place the pool of collected savings into portfolios of financial assets comprising equities of companies located in many different countries ,From the standpoint of U.S investors ,there are four main types of such internationally focused mutual funds:
1- global funds purchase packages of equities that contain stocks of corporations both in the United states and in other countries.
2- international funds do not hold U.S securities but purchase exclusively the stocks of companies located in other countries .
3- Emerging market funds hold a portfolio of stocks of companies in developing countries-for example,in Argentina ,the Czech Republic ,Indonesia ,and Malaysia .
4- Regional funds focus on securities of companies in particular geographic areas or countries -for example ,in Asia ,Latin America ,Chine,Germany,and Japan.