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Where to buy IBM

  • 05-09-2015 7:26pm
    #1
    Sparky1972
    Registered Users, Registered Users 2 Posts: 41 ✭


    IBM are quoted on NYSE and Frankfurt exchanges. Which exchange should I buy from. What us advantage or disadvantage of 1 over the other.
    Dies it make more sense to buy on Frankfurt and avoid the fx risk?


Comments

  • #2
    irishnh
    Registered Users, Registered Users 2 Posts: 21 ✭irishnh


    Can't answer your question, but I've been looking at them too, great historic dividend increases and just waiting for the price to drop a little more to get up to over 4% yield.


  • #3
    daheff
    Registered Users, Registered Users 2 Posts: 5,933 ✭✭✭daheff


    Sparky1972 wrote: »
    IBM are quoted on NYSE and Frankfurt exchanges. Which exchange should I buy from. What us advantage or disadvantage of 1 over the other.
    Dies it make more sense to buy on Frankfurt and avoid the fx risk?

    they are (effectively)the same stock, just listed in different jurisdictions.

    Buying in US or Frankfurt wont avoid FX risk. Why not? Well lets say you are an institutional investor with access to both markets. why would you buy in US at a price higher than the converted price in Europe (or vice versa)? there will be a small differential to take account of local costs (eg SEC fee, brokerage fees etc), but by & large will cost the same.

    I would suggest that you buy in the location with the most liquidity as that will be the easiest place to sell afterwards. If both locations are highly liquid, then buy in the location with the same currency as you (keeps things simpler).


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