Currency

Foreign Stock/Foreign currency?

is it profitable to hold a foreign listed stock (NOT ADRs) and hold THAT countrys currency in a bank account in that country all at the same time?

Public Comments

  1. In my opinion, way too many moving pieces. You are dealing with a foreign company stock that could fluctuate, and foreign currency that could change as well. If both go down, your investment could drop, fast.
  2. It depends on which currency you are measuring 'profit' in. If the price of a 'foreign' share varies in that country's currency or the exchange rate between currencies vary, the ADR price will vary to compensate with either or both. So, it won't matter. By buying 'foreign' currency, you are subjecting the value of those funds to exchange rate variation. It could result in profit or loss, depending upon how you measure it.
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