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Retail Investor's Perspective
A loss of $1,750 would have been realized on the TSXV but that loss reduced to only $126.49 when the Canadian Dollars were converted back to US Dollars after the sale. This example clearly demonstrates how exchange rates contribute to gains and losses. A weaker USD on the sale compared to when bought is a gain to the investor because more USD can be bought per Canadian dollar when the USD is weaker when sold compared to when bought. What if this same investor purchased 750,000 shares of Tetra Bio-Parma Inc (CSE:TBP; OTC: TBPMF) on August 31, 2016 when the share price was CAD$0.04/USD$0.04. Repeating the above table for TBP: