Currency Trading Vs Stock Trading
What is the difference in buying a stock in US dollars or CDN Dollars?
There are several such as RIMM and RIM Where one is traded in canadian currency and the other is in US Currency. Can someone explain the significance of this? IE. I bought the USD one and USD dropped vs canadian dollar what happens? And Vice versa.
Thanks!
What I meant was… I live in Canada, so if I invest in a $US (S&P500) mutual fund at TD, how does the changing of currency affect the value of my mutual fund.
The only difference is that the Canadian one RIM, trades on the Toronto Stock Exchange(TSX) so is available easily to canadians, with Canadian currency. The RIMM, is traded on the New york Stock Exchange (NYSE) to make it easier for Americans to invest in Research in Motion, so its in US dollars. Usually the differences in prices are strongly correlated to the difference in Currency. I think right now to get one American dollar you need 1.29 Canadian. So the canadian stock (RIM) should be about 29% higher.
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