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Re: beigledog post# 71329

Tuesday, 05/01/2007 11:23:04 AM

Tuesday, May 01, 2007 11:23:04 AM

Post# of 173655
beigledog........buying canadian stocks.....

Pink sheet symbol is used by your American broker to enter the trade into their electronic systems. The trade doesn't go thru the pink sheet system in the US. Your broker has a Canadian broker to handle Canadian trades. They take your pink sheet symbol and convert it to Canadian stock symbol and send the request to their Canadian broker/affiliate.

The Canadian broker converts your US$ bid or ask to C$ and executes the trade on the proper Canadian exchange. That's why you never see the pinksheet trade.

Is all this work for free? No. The Canadian broker is going to get paid. They typically add a .01 or .02 to your ask price or subtract the same from your bid to get their commission.

You can't tell what the real bid/ask is for the pink sheet because it doesn't trade as a pinksheet. Go to stockhouse.com. Plug in the canadian symbol. Get the quote screen. On the quote screen there is a pulldown menu in the middle of the screen that gives you the US$ equivalents for the bid/ask. It's sometimes off but close. After you see what the bid/ask is, you can decide how to price your bid/ask. Typically your broker will give you these conversions but I prefer to get them myself rather than wait on the phone. You can do the same thing by getting the current Canadian exchange rate and applying it to the Canadian stock price. Bobwins

Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.

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