I analyze the risks of the choice between greenfield foreign direct investments either in the US or in Europe, and the choice between cross-border mergers and acquisitions either in the US or in Europe. The aim is to test if the stock market reactions are dependent on the FDI mode of entry and between the entry mode and the FDI’s other attributes. By focusing on the American and European listed firms, I found that stock market reaction to FDI is conditional on which form of entry mode is chosen.