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ARM is a company I'm interested in. I think they're in a real good place for the long term.

I'm very new to investing. They trade under NASDAQ:ARMH and LON:ARM. 2 things. Am I wrong for preferring to invest in LON:ARM (instead of NASDAQ:ARMH)?

In my mind, NASDAQ is tied to the USD and I still don't like any fundamentals about the American economy. I believe their dollar will continue to lose value.

But as Canadian, is it difficult to purchase LON:ARM? Can I do this through someone like Questrade?
 

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On the face of it, there is no difference to you as an investor between holding ARM (London) and ARMH (NASDAQ) except for the fixed ratio between the underlying security, ARM (London) and the American depository receipt (ADR) ARMH. Each share of ARMH represents 3 shares of ARM (London).

You are really only exposed to ARM's pound denominated earnings, even when you hold it through the ADR. If the US dollar depreciates against the pound and the Canadian dollar, the value of the ADR will rise. In Canadian dollar terms, as long as the Canadian dollar remains at the same exchange rate with the pound, your holdings of ARMH or ARM (London) should remain about the same value, subject to fixed ratio previously mentioned.

You can be assured that the US dollar value of ARMH will not diverge very far from that of three shares of ARM (London) because arbitrage traders with access to the LSE and NASDAQ will eliminate the difference.

Personally, if I were in your position, I would rather purchase ARMH than ARM (London) because of the lower transaction costs on NASDAQ compared to the LSE. I think there would be UK stamp duty to be paid.
 

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Second Robillard's point. Since ARM is listed in London and reports in pounds, you do not have US dollar exposure but you do have exposure to fluctuations in the value of the pound and the Canadian dollar. Never tried buying or selling on exchanges other than Canada or US, so can't comment on it.
 
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