From Dr. Steve Sjuggerud, Editor, True Wealth:
It is, in my opinion, the biggest anomaly in finance…
Just think about how crazy this is for a second…
Apple, for example, trades for around US$100 a share.
But imagine for a moment that you could buy the identical shares today in Canada for US$70 a share.
I promise, there is no difference in the shares – at all. The only difference is that these shares trade on another stock exchange.
What would you do?
A smart investor would buy those Canadian-traded shares, right? A smarter investor would sell his U.S. Apple shares for US$100 and use the proceeds to buy the shares in Canada at US$70.
A hedge-fund manager would take it one step further… and sell short at US$100 and simultaneously buy at US$70.
This situation is happening right now. Some of the world’s biggest companies trade on two different exchanges,