How to Invest in Stocks in Israel
Israel is a fascinating and difficult investment environment, but is relatively open to foreigners. Some of the most significant Israeli companies are involved in technology, manufacturing, defense, engineering and agriculture.
Many Israelis have strong links to the Middle East, Europe and the United States, helping the companies to do business everywhere in the world.
Another benefit is that while Hebrew is the national language, it's quite easy to find coverage of Israeli business in English. In addition, most Israelis speak both English and Hebrew, reducing the difficulties for American investors brave enough to explore this emerging market.
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Instructions
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Shalom. Let's buy some shares.
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Conduct research as you would in any kind of investing. Luckily, there are plenty of English-language resources for investors looking to learn more about Israeli business. Globes [Online] is one of the best such sources. Newspapers like Haaretz and the Jerusalem Post are also valuable.
Familiarize yourself with the business environment and some of the major companies. You'll find multibillion dollar concerns that you've probably never heard of.
The major thing to be aware of is that Israeli stocks have historically been sensitive to the unpredictable turns of politics and war. While that often means good news for defense stocks, eruptions of violence are never good news for business as a whole. Stay well-hedged for such eventualities.
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Purchasing stock in Israeli companies listed on Nasdaq is about as simple as purchasing an American stock.
Many Israeli stocks are listed on American exchanges. The Israeli tech industry, which is seen as one of the most innovative in the world, has many stocks listed on Nasdaq.
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Invest in Israeli mutual or hedge funds.
The burgeoning finance industry there has provided global investors with easy ways to pick stocks with relatively lower risk and work involved in research, making it a good choice for American international investors.
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Invest in the Tel Aviv Stock Exchange (TASE).
It's legal for foreign investors to send money there, but it is relatively difficult because of the tax requirements that you would be exposing yourself to. Get expert help if you're planning to follow that course of action. On the bright side, many stocks listed on the TASE are dual-listed on American stock exchanges. Before you invest in a stock on the TASE, check if it is listed on an American exchange.
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Resources
- Photo Credit David King, Flickr
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One way to remember to pray for the peace of Jerusalem....
