When participating in foreign investing or foreign funds, you need to learn the lingo if you want to be have success in the market. There are often a lot of investing terms and expressions that can be used and if you are not clear on what they mean, you will not be able to properly read an agreement or other details regarding your investment.

If you want to diversify your portfolio, you can invest 10-25% of your funds in foreign options. You can do this by looking for investment opportunities that are labeled as “foreign” or “international”. If you see funds that are listed as “global” or “world-stock” these refer to both U.S. and non-U.S. securities.

Resident of an economy - an individual that has a midpoint of financial interest in the economic region of a country. Residency is usually indicated by a one-year stay in that country. The one-year period is suggested only as a guideline. It could be different according to the country.

Foreign Direct Investment – this is an investment made by a foreign individual or company in productive capacity of another country (for example, the purchase or construction of a factory).

Foreign Equity Capital – this refers to the equity that is in branches and all shares in subsidiaries and associates as well as other capital contributions of foreign investors.
Other foreign direct investment capital - covers the funds that are borrowed between foreign direct investors and subsidiaries, branches, and associates - including debt securities, suppliers’ credit, and nonparticipating, preferred shares
There are also many more basic investing terms and acronyms that you can expect to find used in reference to foreign investing options. If you are new to investing or you are not familiar with these common terms already, then you should take the time to learn the basics. You will feel much more comfortable with contracts and similar documents when you know the lingo of investing and foreign affairs.