What are the advantages of investing in U.S. stocks?
U.S. stocks, that is, the U.S. stock market. Opening time: The United States adopts daylight saving time from the second Sunday in March to the first Saturday in November each year. Is it suitable for us novices to invest in U.S. stocks? The editor has compiled here the advantages of investing in U.S. stocks for your reference. I hope you will gain something from the reading process!
1. U.S. stocks have the most diverse investment products
There are many types of U.S. stocks , any type of company, any nationality, can be listed on Wall Street, this is an advantage that other stock markets in the world cannot match. Most of the internationally renowned companies such as McDonald's, Starbucks, Coca-Cola, Visa, Apple, and Google are listed in the United States. In addition, the design of US stock products is flexible and can meet various types of investment needs. For example, ETFs can be long or short, ETFs linked to various countries, gold and silver commodity ETFs, futures ETFs, etc.
2. Diversification of U.S. stock trading methods
The U.S. stock market has a wealth of investment methods, and you can make money regardless of the bull market or the bear market. U.S. stocks can be bought up or sold short. In particular, stocks and corresponding options can be used to combine various investment strategies to hedge risks. Relying on different investment portfolios, you can profit from the rise or fall of stocks, and you can also lock in gains or limit the range of losses.
3. The investment threshold for entering the U.S. stock market is low
There is no limit on the number of shares per transaction, and you can operate by buying only one share. However, when buying high-priced blue chip stocks in other markets, you can easily buy them with just one share. A considerable amount of capital is required. In comparison, the investment threshold for U.S. stocks that are purchased in units of shares is relatively low. In addition, they are also blue-chip stocks. Some blue-chip stocks in the United States have quite generous dividends. Investors can earn dividends as well as capital gains.
4. U.S. stock trading is flexible
U.S. stocks can be traded T+0, that is, stocks bought on the same day can be sold on the same day, and there is no price limit limit, and the liquidity is very good. Imagine how anxious a risk-averse person would be if the stock he just bought rose by 20% that day and he sold it immediately, but he couldn't sell it on the same day. Financing is easy. Almost all U.S. securities firms can open a margin account. You can apply when opening an account. No additional procedures are required during the operation. It is simple and quick, and you can use small to win big.
5. Globalization of U.S. stock investment
Almost world-renowned companies will list on Wall Street. It also includes China’s top Internet companies Alibaba, Baidu, JD.com, etc. Even high-quality companies that are not directly listed in the United States generally issue ADRs in the United States, such as Toyota Motor, China Mobile, HSBC, etc. That is, _, a US stock account, buys high-quality assets around the world. Investors can invest all over the world through Wall Street. The U.S. stock market is an extremely open market, and all developments in the world economy will be immediately reflected in the Wall Street stock market.
6. U.S. stocks are suitable for value investment
Compared with the Chinese A-share market, U.S. stock valuations are more reasonable and provide more safety margins. The average price-to-earnings ratio of A-shares in Shanghai and Shenzhen is 30 times, not to mention the GEM. They are all price-to-earning ratios. The average price-to-earnings ratio of U.S. stocks is less than 20 times. Moreover, American companies focus on shareholder returns, and many stocks pay cash dividends every quarter. For example, Coca-Cola and Starbucks have paid high dividends for many years in a row. Some emerging technology companies also often reward shareholders through stock buybacks and other means.
7. The amount of insurance for U.S. stock accounts is high
U.S. stock investors enjoy insurance coverage of up to $500,000 (including $100,000 in cash compensation) provided by members of the Securities Investor Protection Association (SIpC). . Many brokerages purchase additional insurance to increase the account insurance amount. Reference reading: How to ensure the safety of funds when investing in U.S. stocks
8. U.S. stock information disclosure is more rigorous
A standardized and transparent market with all-round supervision. The U.S. capital market is highly regulated and cracks down firmly on insider trading, market manipulation, and financial fraud by listed companies. In addition to the supervision of the U.S. Securities and Exchange Commission (SEC), the U.S. stock market also has various short-selling institutions, law firms and private private media participating in supervision and questioning, which makes listed companies and their management more rigorous and responsible. Therefore, it is safer and more effective than the A-share market in this regard.
9. Financial planning can be done as early as possible
Many listed companies in the United States will announce their annual stock rights and dividend plans at the beginning of the year, and pay them quarterly. This can facilitate investors in financial planning and can also be used as an investment reference.
10. U.S. stocks have low transaction costs
Investors often ignore transaction costs when looking for investment opportunities. A common myth is why stocks have clearly made profits this year, but why? Not making any money? Invest in U.S. stocks directly through online brokers. Trading commissions are cheap and simple.
11. There is no capital gains tax when opening an international account
The United States encourages overseas people to invest in the United States and open international accounts as foreigners. They only need to submit the W8bEN document when opening the account and schedule it regularly. If you renew, you will enjoy the benefit of being exempted from capital gains tax, which means that you do not need to pay stamp duty, transfer fees and other various taxes for U.S. stock transactions, only simple brokerage commissions. In addition, for non-U.S. citizens, capital gains tax is not required on gains generated from buying and selling stocks. .
12. Foreigners can apply for dividend withholding tax refund
The United States will impose a withholding tax ranging from 10% to 30% on cash dividends depending on the nationality of the foreigner. I don’t know that this withholding tax can be refunded from the IRS. Investors often ignore this discount due to lack of information or because they think the procedures are cumbersome.
Tips:
US stock traders are traders who engage in trading stocks listed in the United States.
Generally, a trader is a person who acts as a principal or trades for the other party in a transaction. Place a buy or sell order in the hope of earning the difference (profit). In contrast, a broker is a person or company who acts as an intermediary to connect buyers and sellers for a commission.
U.S. stock traders are also called daytrader, which means intraday traders, requiring all positions to be closed within the day. The U.S. stock market has a T+0 mechanism, which means you can go short, there is no price limit, and you can make thousands of transactions on the same day.
Recently, the U.S. stock market has only had preliminary development in China. Everyone has different opinions on this industry. However, the U.S. stock market system also has a lot to learn from. I believe China will slowly improve in this regard. Be known by everyone.
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