Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Is foreign stock considered more risky than local stock and why?
It is very important to note the strength and reputation of the country's regulatory agency. You cannot assume the standards of say the SEC (US Securities and Exchange Commission) apply in other countries (even well-developed ones). These regulations force companies to disclose certain information to inform and protect investors. The standards for such practices vary internationally.