Foreigners are normally not allowed to own more than the percentage permitted by Mexico’s Foreign Investment Law. In order to get around this, some Mexican companies have created “N” stock or neutral stock. Foreigners may own “N” stock even if it places the percentage of foreign ownership over the permitted limit. This stock carries no voting rights however.
When investing directly in foreign stock like this it’s important to consider the tax implications. You may be liable for tax in both the US and Mexico, so it’s wise to check with your accountant before you invest any money.
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