How to Invest in Stocks in Canada
- 1). Find Canadian stocks that are traded on US stock exchanges. Many corporate stocks trade on different stock exchanges, including many that are from Canada. JDS Uniphase and Nortel, as well as a host of Canadian energy companies and multinational banks, have their roots in Canada. More than 60 Canadian companies are among the 2,000 largest in the world, and most of them trade their stock on US stock exchanges.
- 2). Buy stocks that have a major presence in Canada, even though they are US companies. For example, this country's so-called "big-three automakers" also sell their cars in Canada, and companies like Wal-Mart have hundreds of stores north of the border. If you wish to participate in Canada's growth, look only for stocks such as these.
- 3). Invest in mutual funds sponsored by hundreds of companies that specialize in stock of Canadian corporations. Companies like Fidelity and Franklin Templeton have several Canadian mutual funds from which to choose. But you can also contact Canadian firms such as RBC Funds that offer an array of mutual funds that may fit your portfolio.
- 4). Buy stocks from a brokerage firm that can execute trades on the Toronto Stock Exchange, one of the largest in the world. To do this, you will have to establish a relationship with a full-service firm in Canada with a seat on that exchange. Also, a number of Canadian companies trade their American Depository Receipts on major exchanges in the United States. Ask your broker for details about the difference between ADRs and shares of stock.
- 5). Subscribe to the "Investor's Digest of Canada," a monthly publication that will educate you about the opportunities that shares of stock of Canadian companies can provide. But just like any investment that you would make in the United States, do your homework before you make the purchase, and remain diligent because any company's prospects can change almost overnight.