So far in this book, we have mainly restricted ourselves to securities issued in sterling by a UK company or the UK government. This emphasis is misleading since, as we saw in Chapter 1, over half the market value of securities quoted on the London Stock Exchange is made up of overseas securities,1 traded in London but not necessarily in pounds and pence. For example, an IBM eurobond may be denominated and quoted in dollars and Deutsche Bank shares will be quoted in German deutschemarks. However, international investment does not have to be made via securities listed on the Stock Exchange in London. Foreign securities such as US Treasury bonds or Japanese equities which are quoted in markets other than the UK stock market can be bought via brokers based in London or overseas.2
Unable to display preview. Download preview PDF.