Is a foreign stock held in a foreign brokerage considered a foreign financial asset?

[DoninGA · Accepted solution]

Yes.  See IRS Form 8938 instructions on page 6 - https://www.irs.gov/pub/irs-pdf/i8938.pdf

Specified Foreign Financial Assets  

Specified foreign financial assets include the following assets. 

1. Financial accounts maintained by a foreign financial institution. 

2. The following foreign financial assets if they are held for investment and not held in an account maintained by a financial institution: 

  a. Stock or securities issued by someone that is not a U.S. person (including stock or securities issued by a person organized under the laws of a U.S. possession), 

  b. Any interest in a foreign entity, and 

  c. Any financial instrument or contract that has an issuer or counterparty that is not a U.S. person (including a financial contract issued by, or with a counterparty that is, a person organized under the laws of a U.S. possession).