In addition, foreign issuers are, generally speaking, subject to
less government supervision and regulation and different accounting treatment than are those in the United States.
These considerations include changes in exchange rates and exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, foreign government restrictions,
less government supervision of exchanges, brokers and issuers, greater risks associated with counterparties and settlement, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.
These include the risks of currency fluctuation, of political and economic instability and of
less well - developed
government supervision and regulation of business and industry practices, as well as differences in accounting standards.