Currency exposure for listed on American Exchanges

[07mcattaker]

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Can anyone field this one?

If I buy a stock in a foreign company using American depository receipts, and then the foreign currency appreciates against the dollar although the price of the stock does not change, do I realize a gain on the investment?

Thx

 

[The White Coat Investor]

Can anyone field this one?

If I buy a stock in a foreign company using American depository receipts, and then the foreign currency appreciates against the dollar although the price of the stock does not change, do I realize a gain on the investment?

Thx

If the price of the stock doesn't change, then no. But typically, if the dollar weakens and all else remains the same, the price of the stock goes up.

At least that is how I understand it.

BTW the phrase "realizing a gain" means actually selling the shares, which it doesn't sound like you meant from the context.