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It held $6.6 trillion-worth of foreign shares and direct investments at the end of 2008, even as foreigners held $4.1 trillion-worth of American government securities.
A bank holds a number of foreign shares in custody overseas and assigns ADRs to represent interests in those shares.
This can involve the listing of foreign shares or depository receipts, alliances to exchange information or technology, or cross-border mergers.
Although the Morgan Stanley Capital International EAFE (for Europe, Australasia and the Far East) index of foreign shares is down nearly 7 percent in 2010, the losses have been twice as large for Americans after factoring in the strengthening dollar.
It will allow American holders of foreign shares to be treated on an equal basis with other shareholders.Prices upAmerica's consumer-price index rose by 0.4% in September, giving an annual inflation rate of 2.6%, in line with expectations.
For example, between the October 2007 peak and the start of December this year, both the Standard & Poor's 500 index of domestic stocks and the Morgan Stanley Capital International EAFE index of foreign shares fell more than 40percentt.
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With a lifting of restrictions on foreign shares, called the "ring fence," foreign ownership is now allowed to be as high as 49.9percentt.
To add to the problems of holding foreign shares, there is the risk of the deal itself.
Currency fluctuations worry investors preoccupied with the dollar value of their foreign shares.
2. Depository receipts: The class, series and number of the foreign shares represented by the depository receipt.
An 11% portion of the endowment is in foreign shares, one of the few cases where Yale is in line with similar funds.
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