The FX forecast indicates that the value of British Pound will fall vis-à-vis the US dollar over the next three months. You are considering investing for three months in a dually listed stock on the NYSE as well as the LSE. Since it is the same stock, the risk-return profile is identical except for the fact that it is listed for trade in different jurisdictions with different currencies. Assuming you are a British citizen, where should you purchase the stock – Britain or the United States? Provide suitable arguments for your decision. 

b)briefly explain the pump and dump strategy and the inherent danger in it.

Answer rating: 100% (QA)

a As a British citizen considering investing in a dually listed stock on both the NYSE and the LSE the decision of where to purchase the stock would depend on the forecasted movement of the British Po... View the full answer