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Reasons To Invest In Bank Of America Corporation

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Investing is a serious matter and requires thorough research. A person should research the product and the background of the company before deciding to invest in the company. The reason being is that when investing in a company a person is taking the risk of either gaining money or losing everything. There are numerous of ways a person can choose to invest. Bonds, stocks, and mutual funds are just a few ways that people can invest. When deciding to invest a person has the opportunity to invest in their own bank. The bank I use is United Services Automobile Association (USAA) and it is not traded on the stock exchange market. Since United Services Automobile Association (USAA) is not on the stock exchange market I will be examining Bank of America. …show more content…

Interest rates, valuation, dividends, and buy backs are just a few reasons for a person to consider purchasing Bank of America Corporation stock. Recently after passing the Federal Reserve stress test in 2016, Bank of America has decided to boost its dividends by 50 percent. After the boost one can find that Bank of America is paying out $0.075 dividends. In addition to the increase in dividends, Bank of America Corporation has been increasing the number of buy backs and plans to continue buy bank shares for the next couple of years. Starting in third quarter of 2016, Bank of America Corporation is planning to purchase an additional $5 billion worth of shares over the next year. (Ashe, 2016) With Bank of America Corporation buying back shares, the price per share has the opportunity to increase. Bank of America Corporation buying back stock will decrease the amount of stock available and increase the price. This is a good sign seeming that Bank of America Corporation has been trading at below value since the 2008 financial crisis. The last reason is that interest rates are rising. Banks tend to make more money when interest rates are raised due to more money being made off of

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In this paper I have compared two financial institutions, Wells Fargo and Co and its competitor Bank of America using different tools and techniques given in chapter 12 of text book. In this paper I will give a detailed analysis of both the Banks as well as ratios on ROE, ROA, Equity Multiplier, Profit Margin, Asset Utilization, Net Interest Margin, Interest Expense ratio, Provision for Loan loss ratio, Noninterest Expense ratio, Tax ratio, Interest Income ratio, Noninterest Income Ratio, The Spread, and the Overhead Efficiency Ratio. After each ratio for the two Banks are calculated, I have performed the time series analysis. Each company ratios are compared to each other for the past five years to compare the performance of both companies

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(Banks and the stock

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They would easily make a lot of money, so I would invest in it. My evidence is that “by 1921, the Ford Motor Company had built and sold five million Model T cars. In the next three years, the company sold 10 million more” (6.2 reading, p. 3). If I invested in the company, then I would be able to make a lot of money because Ford sold a lot of cars. They would automatically make a lot of money, and if I invested in the company, I would also make a lot of money.

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On the 21st of February, 2014, Michael A. Glickstein, owner, president, chief investment officer, and sole employee of G Asset Management LLC, a private investment firm, announced it had offered to purchase a majority share of Barnes & Noble. In his press release, Glickstein stated his plan to acquire 51% of the retail bookseller at a price of $22 per share. Immediately following the announcement of the potential acquisition, Barnes & Noble’s stock price, which was valued at $17.05 increased to $18.99. Within minutes, the New York Stock Exchanged halted trading of the stock briefly due to the spike, which was in excess of 10%. After trading resumed, the price of the stock decreased, but ultimately closed at $17.69, representing an increase of $0.64 since G Asset Management’s press release.

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An increase in economic growth itself will cause Bank of America, along with other international banks, to grow. An increase in both local and international entrepreneurship will also benefit the company because entrepreneurs will need a lump sum of money to be able to start a business and getting loans is one of the ways they can obtain that money. Bank of America has been known to merge with other known banks and companies. The majority of mergers and acquisitions are done to improve both the profit and productivity of a certain company; like any industry, one of the main objectives of a company is to reduce expenses, and for the most part, merging is an efficient way to cut costs. “Banks, in part as a response to the weakened performance,

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The business provides consummate expediency in the United States, serving in the region of 57 million customer and small selling associations with 5,900 trades banking office, more than 18,000 ATMs and respected online bank with 29 million energetic users. Bank of America is amongst the world's most important wealth management company and is a global leader in business and asset banking and operates across a broad variety of asset program serving business, governments, association and individuals around the world. Bank of America offer industry leading hold up to more than 4 million small commerce owners through a set of original, accessible online products and services. The company provides clients through operation in more than 40 countries. Bank of America business stock (NYSE: BAC) is a constituent of the Dow Jones manufacturing Average and is planned on the New York Stock

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Bank of America (BOA) is one of the largest financial institutes in the world having several branch locations in 35 countries (Bank of America). BOA states that they are guided by a common purpose to help make financial lives better by connecting clients and communities with the resources they need to be successful. They promote responsible growth and environmental, social, and governance (ESG) leadership. BOA values state that they as an organization will deliver together, act responsibly, recognize the power of their employees, and trust the team across the organization. BOA believes that they must grow and win in the market in order to remain successful.

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this price may seem high but remember, IBM is an income company. IBM's stock pays back $5.40, that is 3.7 percent of the stock price, higher than the goal of a 1-2% dividend. Also the revenue of the company has grown at a rate of 12.6% compared to a 5.1% growth of cost of revenue over the past four quarters. The revenue is growing more than twice as fast as the cost which is absolutely fantastic. The percent change in assets over the past four quarters does not paint the prettiest picture at -1.4%, but the percent change in liabilities is dropping faster than the assets at -3.7%.

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Organizational Structure Bank of America is an American financial services corporation and is the second largest bank holding organization by assets, in the United States. The headquarter of the financial organization is situated in Charlotte, North Carolina. The bank has approximately 5,700 retail banking offices and 17,250 ATMs in the United States. The online banking system of the bank has more than 30 million active users.

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