Money

[ace00]

Ok, here's a question that's bothered me a while, (simplified scenario):

I buy 100 shares in UK in UKP, of German company listed on German stock exchange. The shares are 1 Euro each.

At the time 1 UKP = 2 euro

So in buying 100 shares I spend 50 UKP.

Next day 1 UKP sinks to 1 euro.

Do my shares then become worth 100 UKP ?

[bored]

Yes, 100 UKP.

[ace00]

No, 100 UKP.

That's what I meant (edited post).
This kind of brainism is way out of my league.

[NotAllThere]

GBP

[ThomasSoerensen]

Ok, here's a question that's bothered me a while, (simplified scenario):

I buy 100 shares in UK in UKP, of German company listed on German stock exchange. The shares are 1 Euro each.

At the time 1 UKP = 2 euro

So in buying 100 shares I spend 50 UKP.

Next day 1 UKP sinks to 1 euro.

Do my shares then become worth 100 UKP ?

Nice edit

[ace00]

Ok, next:

I buy 100 shares in UK in UKP for 1 UKP each, of an investment fund investing in German companies, trading in Euro, listed on German stock exchange. The investment fund itself is listed on the UK stock exchange and the holdings in UKP.

At the time 1 UKP = 2 euro

In buying 100 shares I spend 100 UKP.

Next day 1 UKP sinks to 1 euro.

Am I right to assume my investment remain at 100 UKP (but the corresponding purchasing power reduces to 100 euro, from 200)?

[Gonzo]

Ok, next:

I buy 100 shares in UK in UKP for 1 UKP each, of an investment fund investing in German companies, trading in Euro, listed on German stock exchange. The investment fund itself is listed on the UK stock exchange and the holdings in UKP.

At the time 1 UKP = 2 euro

In buying 100 shares I spend 100 UKP.

Next day 1 UKP sinks to 1 euro.

Am I right to assume my investment remain at 100 UKP (but the corresponding purchasing power reduces to 100 euro, from 200)?

Not quite.

Assuming all other things are equal then:

When you buy £100 worth of shares, that is spent on €200 worth of stuff (German companies).

The next day, the stuff is still worth €200, so it is now worth £200, your 100 shares will be worth £200.

[VectraMan]

On a similar note:

I have an L&G tracker ISA that follows the FTSE Asia Pacific (ex Japan) index. I thought I'd gain if the pound fell, but as it's in pounds I'm not so sure it works like that.

As the index is listed in GPB, does that mean the index automatically rises if the pound falls against asian currencies, or does the value of the listed companies remain the same in GPB?

[BrilloPad]

here's a question that's bothered me since I started reading this thread. what is it about?

[ace00]

Not quite.

Assuming all other things are equal then:

When you buy £100 worth of shares, that is spent on €200 worth of stuff (German companies).

The next day, the stuff is still worth €200, so it is now worth £200, your 100 shares will be worth £200.

And this would then apply if the investment where an ISA? So same scenario, buy a "German companies ISA", goes from 7000£ to 14000£ ? Is it that simple?