Buying shares in euro , advice please.

F

Fella

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Hello ,

Sorry if this is in the wrong place but I've searched for a general questions thread and couldn't find one .

Basically I'm looking for a bit of advice , I've been reading as much as I can over the last few months on a Euro breakup and going back to the punt etc etc. I am more confused than I've ever been , I work in construction and business and economics are not my strong point , I have 50k in savings which I would like to protect somewhat in case of a euro break up and that 50k ending up as worthless punt nua.

I've opened an custody account with NIB and I was considering buying 25k worth of shares in big companies like cocacola , unilever proctar and gamble , You can buy these in euro or usd online, what im confused about is , if I buy these in euro , what would happen if the euro dissapeared would they change to punt nua and id still lose money ?

Any advise greatly appreciated .
Thanks
 
Hi Fella

If you own shares in Coca Cola, their earnings are made in a variety of currencies $,euro, etc.

It won't matter whether you transact in euro or us$, you will own the same underlying asset.

I don't know how it works, and the charges for buying and selling may be different.

Brendan
 
Thank you for your response , thats what I was looking to for , so basically I will own an asset instead of euro , and then I could change this back if ever there was a need to .

Seems safe enough . Famous last words I guess .
 
As Brendan said, it's the same underlying share so the currency won't make any difference. Large cap shares are traded on many exchanges using local instruments. eg. you can buy Ryanair on the NASDAQ as symbol RYAAY in USD using "ADRs" or American Depository Receipts.

Market arbitrage keeps the prices of the depository receipts in line with the currency exchange rates.
 
Thanks guys I have alot to learn , great site this and some great reading . I'm actually and advantage gambler part time so understand alot about sports arbitrage , but stocks and markets are so complicated for me .

Interestingly I have a few thousand euro's in Betfair , is it a really silly idea to keep money there in the event of Ireland going to a punt nua , money held in Betfair or online bookmakers could anyone even guess what would happen this ? My guess is a euro is a euro and only money in the banks would be forced to change to the new punt(if it ever happens ) anyway maybe this is a question for the deposit section on the site.

Appreciate the replies .
Thanks
 
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