Reasons To Invest In The Stock Of Bank Of America
Photo of Bank of America ATM Machine by Brian Katt, Framingham Rest Stop, Massachusetts. (Photo credit: Wikipedia)
Invest In The Stock Of Bank Of America
Bank of America, as its name suggests, is a multinational corporation offering banking and financial services that is based in America. In terms of assets, Bank of America ranks second as far as bank holding companies are concerned. In the year 2010, Forbes has also listed it as the third largest company globally. This company also offers stocks to the common public for the purpose of investment, it is abbreviated as BAC in case of the New York Stock Exchange. Since this is such a huge company, one of the largest in America, therefore people automatically assume that investing in its stocks is a good idea. While this notion is certainly true, there are other reasons too that makes the investment worthwhile.
In between the years 2008 and 2009, Bank of America took a huge hit because of the great financial crisis that occurred during this time. Needless to say, its stocks suffered too; however, the stocks are already recovering now and have started to earn the kind of profits it used to earn in the past before the crisis. Therefore investing in its stocks will certainly bring very fruitful results. After all, every company offering stocks has its high and low points, so just because the Bank of America had a crisis back then doesn't mean that it is a bad idea to invest in its stocks.
Another reason in support of investment in BAC stocks is the fact that this is a highly reputable and trusted company. Moreover, the company's topmost priority would be its customers and it certainly does a lot in order to ensure that they are satisfied with its services. The bank keeps introducing new features and services from time to time in order to ensure that their current customers do not abandon them and that the new ones would be enticed to be associated with the bank. This is certainly good news for the stock price of Bank of America because it strengthens the health of the bank.
Bank of America also has the chance to shed assets and bring a growth in its liquidity to an adequate level without having to sacrifice a lot on its capability to earn. Therefore, this makes the company more capitalized than it has been in years. Once the bank gets rid of the lawsuits tied to housing and recession bubble, its stocks would definitely give an impressive performance.
Stock Of The Day: BAC - March 5, 2013