How to Invest in Stocks in Israel
To invest in stocks in Israel, consider trading in Israeli companies listed in the United States, find out about tax incentives offered to Israeli companies, and learn about the physical location of potential investments. Do some geographic homework before investing in stocks in Israel with advice from a financial consultant in this free video on investments.
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Have you made the investment decision to buy stock in Israeli companies? Hi this is Roger Groh at Groh Asset Management and today we're here to talk about investing in Israeli stocks. Israel is substantially different from other countries in that many Israelis are also Americans and hold duel citizenship and as a result, many Israeli companies actually list here in the United States. Some coincidentally list in Israel but it's not mandatory to do that. So it might also make sense to look through the Israeli companies that trade here in the US. Is the reporting a little bit better? Probably not, because then Tel Aviv they have strict reporting requirements like we do. However what you might get is a little bit more liquidity if there are issues in Israel. We all know that there are big political events occurring daily in Israel and this is not going to be for the fainthearted, it's something to consider as a big part of any investment decision. Last but not least, do Israeli companies hold an advantage over others? Yes they do, the Israeli government has given tax incentives for companies to open up divisions operating in Israel and as a result, frequently they are more profitable on a after tax basis then foreign competitors. They had to do that because of the problems that exist in Israel on the political side. One other note to consider, where are the Israeli companies actually have their facilities? Some Israeli companies have their facilities here in the United States, but yet list themselves as an Israeli company. If I were an investor that would probably make me feel a little more comfortable then a company which had all of their facilities in Israel at a time when there were bombings occurring and rocket attacks occurring within Israel. So do your geographic homework, do your economic and political homework and then last but not least, do your corporate homework. Hope that helps, I'm Roger Groh with Groh Asset and thank you very much for spending time with me.