Stocks on different exchanges
Discussion
I'm trying to get my (tiny) mind around any pro's and cons (if any) of purchasing stock on different exchanges.
For example, lets take AstraZenica.
Would you buy the stock on the UK exchange or the US exchange (and why?)
Does it make any difference at all?
Today AZN is approx $47 a share on NYSE or £30 on LSE.
Thoughts/ insults?
For example, lets take AstraZenica.
Would you buy the stock on the UK exchange or the US exchange (and why?)
Does it make any difference at all?
Today AZN is approx $47 a share on NYSE or £30 on LSE.
Thoughts/ insults?
Judging by your profile and living in the States, do you still have USD in an account over there?
If your not looking to convert GBP to USD, then there's not much short term fx exposure. And I assuming your not looking to arbitrage trade between the two?
You wont pay 0.5% Stamp Duty on the US stocks, but I think you may have issues around taxation of any income on the US side as a UK resident however, I think you need to have a W-8BEN form filed with your broker to avoid double taxation, ie income tax in US and capital gains and income tax in UK, but Id check that out as my distant memory may not be so good any more!
If your not looking to convert GBP to USD, then there's not much short term fx exposure. And I assuming your not looking to arbitrage trade between the two?
You wont pay 0.5% Stamp Duty on the US stocks, but I think you may have issues around taxation of any income on the US side as a UK resident however, I think you need to have a W-8BEN form filed with your broker to avoid double taxation, ie income tax in US and capital gains and income tax in UK, but Id check that out as my distant memory may not be so good any more!
30-percent of any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate U.S. source income, made to (a) non-participating FFIs, (b) individual accountholders failing to provide sufficient information to determine whether or not they are a U.S. person, or (c) foreign entity accountholders failing to provide sufficient information about the identity of its substantial U.S. owners.
(from IRS website).
Who would be the Foreign Financial Institution in your case?
Your broker might have a policy of:
Oh God, not the Americans.
(from IRS website).
Who would be the Foreign Financial Institution in your case?
Your broker might have a policy of:
Oh God, not the Americans.
1point7bar said:
30-percent of any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate U.S. source income, made to (a) non-participating FFIs, (b) individual accountholders failing to provide sufficient information to determine whether or not they are a U.S. person, or (c) foreign entity accountholders failing to provide sufficient information about the identity of its substantial U.S. owners.
(from IRS website).
Who would be the Foreign Financial Institution in your case?
Your broker might have a policy of:
Oh God, not the Americans.
I have an account through TD Trading(from IRS website).
Who would be the Foreign Financial Institution in your case?
Your broker might have a policy of:
Oh God, not the Americans.
chris7676 said:
There is really no currency risks with such big international companies. If the currencies move, the prices will move accordingly to converge.
You should perhaps clarify that a little.There is no currency difference between the two stock prices.
Any tiny delta would be arbitraged out by the bots within nano-seconds.
However, AZN probably has bucket-loads of earnings in USD with far less in GBP so owning the stock (on either exchange) you are effectively making a bet that the USD:GBP doesn't drop too much.
DYOR and I don't know AZN at all but since it's pharma they are all long USD.
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