To broaden your perspective, we teach you how to invest in non-domestic stocks. Namely, we explore the difference between direct and indirect investing through depository receipts. We further divide the latter into unsponsored and sponsored and explore how they differ with respect to voting rights. Then, we examine two additional ways to gain foreign equity exposure: through global depository receipts (GDRs) and American depository receipts (ADRs). After covering the basics, we provide a deeper insight into the risk and return characteristics of various equity securities. More specifically, we explain the role of equity securities in company financing. Then, we discuss the difference between the market and the book value of equity. Finally, we touch upon the relationship between a company’s cost of equity and return on equity and investors’ required rate of return.