Foreign stocks refer to the shares or ownership stakes in companies that are based outside of one's home country. These can include publicly traded companies from other countries, as well as private companies whose securities are sold on foreign exchanges. Investing in foreign stocks allows investors to diversify their portfolios and gain exposure to the growth opportunities offered by companies operating outside of their own domestic market. It can also help hedge against currency fluctuations, since returns from foreign stocks are often denominated in different currencies than those used domestically. However, investing in foreign stocks may also come with additional risks such as political instability or economic volatility in the countries where the companies operate.