What is the Bank of America Corporation?
Bank of America Corporation is a multinational financial services and investment holding company based in the United States. The majority of the company’s business occurs within North America, with Canada and US operations accounting for 67% of total business. The remaining 33% of revenue is earned overseas, primarily in Asia and the Middle East. Its primary domestic operations focus on investing, wealth management and commercial banking.
The Bank of America Corporation was formed in 1998 when Nation Bank acquired all the assets of Bank America. This occurred when Bank America became financially unviable in the wake of massive Russian bond defaults, which led to losses in excess of $62bn. The company operates four main business segments: consumer banking, global wealth and investment management, global banking, and global markets. It manages over $1trn in total assets and is the second largest banking corporation in the US, after JPMorgan Chase. The company clocks in as the sixth largest publicly traded corporation overall in America. Upwards of 11% of all US domestic deposits are held by the bank. The company was able to increase net income during the pandemic of 2020 and was a net beneficiary of government consumer supports.
Performance of Bank of America share price
The Bank of America stock value has improved dramatically in the 12-month period starting in April 2020 and throughout the pandemic. While revenues did decrease by 6% from $91bn in 2019 to $86bn in 2020, the company was able to benefit from reduction in staff and real estate expenses as well as improving risk profiles of customers who benefited from deferrals on credit cards and loans.
As of late April 2021, the BAC stock price has traded within the 52-week range of $20.10 to $40.38 at an average volume of 54.5m shares per month. The company has a massive market cap of over $329.5bn and is included in the S&P 500 index. Bank of America will be one of the stocks to buy if it is able to build on this current trajectory.
How to buy Bank of America stock
Bank of America stock investing occurs on the New York Stock Exchange (NYSE). Those looking to buy Bank of America stock can purchase it directly through the exchange, through a broker or indirectly through an index that includes BAC. Traders are also able to purchase derivatives based on the Bank of America stock price such as CFDs or options.
Investors looking to buy Bank of America stock by using the Dzengi.com tokenised platform are able to profit from upward or downward movements in the BAC stock price without having to invest directly. Tokenised assets are crypto derivatives whose value is linked to the value of a particular asset, in this case the Bank of America share price. The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows for trading using crypto without the need to convert back and forth with fiat currency, saving exchange fees. The utilisation of this technology allows tokenised asset trading to be efficient, inexpensive and secure.
When trading tokenised assets based on the Bank of America share price you can take a long or short position depending on whether you feel the price today is over or under-valued based on the BAC stock price chart. If you think the BAC share price will decrease you can take a short position and if you think it will increase you can take a long position. Trading in tokenised assets on Dzengi.com also allows traders to benefit from the leverage offered on the platform, up to 1:20 leverage.
Why trade tokenised Bank of America shares with Dzengi.com?
Trading tokenised Bank of America shares with Dzengi.com tokenised assets exchange has a number of advantages. Tokens are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument’s price.
- One-stop crypto trading platform
Trade BAC shares with Bitcoin or Ethereum. Benefit from the share price movements without exchanging your crypto assets into fiat.
- Tight spreads
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
- Leverage
Experienced traders can trade the world’s top stocks, like BAC, with up to 1:20 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
- Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades a second.
- Safe regulation
Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
Tokenised shares trading guide
Trading tokenised Bank of America shares is no more difficult than regular shares. To begin trading tokenised assets, you will need to follow some simple steps:
- 1. Register for an account with Dzengi.com
- 2. Deposit funds (with crypto or fiat) in the account
- 3. Determine the position size desired, accounting for leverage offered by Dzengi.com
- 4. Determine your trading position (long or short) based on expected price movement and purchase tokenised Bank of America shares
- 5. Dzengi.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE, and Gain Capital
- 6. Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position
