Using a large sample of U.S. multinational firms during the 1993–2012 period, we test the hypothesis that foreign cash holdings generate uncertainty among market participants. We provide evidence that cash held abroad is associated with greater information uncertainty among analysts, and causes more dispersed beliefs and abnormal trading volumes among investors. Further analyses document that these results are mainly explained by foreign cash held in countries with low economic growth and high tax difference with respect to the US. Overall, our findings shed light on the economic consequences of foreign cash holdings and offer support to the SEC’s recent effort to encourage companies to increase disclosure about their cash holdings.