Educational material from 
What you will learn
- Convert holding value into SEK using a clearly defined exchange rate.
- Separate the share-price change from the currency change.
- Multiply change factors instead of simply adding percentages.
State how much one currency unit is worth in SEK
Our holding contains ten fictional shares priced at 100 V each. At the start, 1 V is worth SEK 10. The holding is worth 10 × 100 × 10 = SEK 10,000. The formula is share count × price in V × SEK per V.
The unit SEK per V matters. If another table states V per SEK, you cannot use it in the same way. Check the direction and time before calculating. All values in the starting table should refer to the same moment in the exercise.
The share rises, but its SEK value falls
At the end, the share costs 110 V, a 10 percent rise in V. Meanwhile 1 V is worth SEK 9, a 10 percent fall in SEK per V. The ten shares are worth 10 × 110 × 9 = SEK 9,900.
Compared with the starting SEK 10,000, that is −1 percent. Share price rose in V, but the currency move worked in the opposite direction. Investor.gov explains that exchange-rate changes can increase or reduce the return on an international investment.
| Time | Price per share | SEK per V | Holding in SEK |
|---|---|---|---|
| Start | 100 V | 10 | SEK 10,000 |
| End | 110 V | 9 | SEK 9,900 |
The changes multiply
The price-change factor is 110 ÷ 100 = 1.10. The currency factor is 9 ÷ 10 = 0.90. Together they give 1.10 × 0.90 = 0.99, or 99 percent of starting value. Simply adding +10 and −10 would give zero and miss the smaller calculation base.
You can isolate the parts in two alternative exercises. If only the share changes, value becomes SEK 11,000. If only the currency changes, it becomes SEK 9,000. When both change together, it becomes SEK 9,900. These scenarios show what each input means.
If the table does not fit, scroll it sideways.
| What changes? | Ending value in SEK | Change |
|---|---|---|
| Share price only | SEK 11,000 | +10 % |
| SEK per V only | SEK 9,000 | −10 % |
| Both together | SEK 9,900 | −1 % |
A converted value is a simplified model
We hold share count constant and leave out dividends, fees, tax and currency-conversion costs. A real transaction may use different rates for buying and selling. A company's operations may also be affected by currencies in ways this simple conversion does not show.
Record dates, currency, quotation direction and what the total includes when evaluating simulated practice. The connection to Investiq is interpreting data and reasoning about results. The lesson does not promise a particular conversion or currency hedge in the app, and does not suggest currency trading.
- Record the price's currency.
- State the SEK value of one currency unit.
- Convert the start and end separately.
- Compare the converted values using the same starting base.
Try it yourself
Five fictional shares initially cost 40 V each and later 44 V. The exchange rate is initially SEK 10 per V and later SEK 8 per V. How does holding value change in SEK?
Show the solution and explanation
From SEK 2,000 to SEK 1,760: −12 percent.
Start: 5 × 40 × 10 = 2,000. End: 5 × 44 × 8 = 1,760. The difference is −240; dividing by 2,000 gives −12 percent. The factors 1.10 × 0.80 give 0.88.
Check your understanding
Must a positive share-price change in V produce a gain in SEK?
No. Exchange rate also affects converted value. In the main example the result is −1 percent in SEK despite a 10 percent rise in V.
Why state SEK per V?
To show the conversion direction. Value in V is multiplied by SEK per V to give SEK.
Practise with virtual money
Try what you just learned in a practice portfolio with virtual money. You don't deposit any real money.
How the practice portfolio worksKeep learning and practising
More lessons on this topic
Prices, company events and currency
- Share price and market cap: why price does not show company size
- What is a stock split? Calculate shares, price and ownership
- Calculate return including dividends: a simple example
- Percentages and percentage points: when a proportion changes
- Read a stock chart: time period, starting point and price basis
Sources and examples
The sources support the factual explanations. Calculations and exercises were created for this lesson. Amounts and price changes are invented unless stated otherwise.
This material is educational and does not recommend securities to buy. A simulated result does not guarantee a future result.
