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US & Canadian Stock Price Question
Hello,
Here's a question that has always puzzled me.
I own a few Canadian stocks, both on the Vancouver and the Toronto exchange.
Each one of these stocks has an equivalent U.S. pink sheet exchange ticker symbol.
Let's call one Canadian stock ABC.V.
Let's call its equivalent pink sheet symbol ABCDE.PK.
I know that a Canadian dollar is always greater in value than a U.S. dollar.
For example, if ABC.V sells for $5.00 a share, then ABCDE.PK sells for usually less than a dollar. From my experience, usually between 80% to 85% less.
Here's my question.
Sometimes I check on the percent change of both ticker symbols of the same stock at the end of the day.
One of them shows green and a percent gain.
One of them shows red and a percent loss.
Why is that?
Even though a Canadian dollar and a U.S. dollar are not eqivalent, shouldn't the percent changes be proportional, at least in regard to direction (i.e., either gain or loss)?
Thanks.
Munch
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