Stocks are typically purchased through local brokers licensed to trade only in home-country exchanges. Unless you have a very large nest egg and a private banker, about the only convenient way to get exposure to U.S. bourses or other Asian exchanges is to purchase shares of international mutual funds.
Choices are somewhat limited and up-front fees high.
The Internet is changing that. Today, an investor in Hong Kong can with a few mouseclicks snap up shares in a New York drug company, while a punter in Singapore can buy Taiwan technology stocks. In effect, the Net allows even small retail investors to become multi-market fund managers. More than three-fourths of Hong Kong residents registered to trade through Schwab's Hong Kong office are trading U.S. equities online. Part of the appeal, of course, is convenience.