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I understand that banks really make all the money. How do I invest in them?

2006-11-23 01:38:27 · 5 answers · asked by Anonymous in Business & Finance Investing

5 answers

Do research & pick the bank that you think has the best prospects.
Transfer money to a stock broker and then buy the stock.

2006-11-23 01:40:37 · answer #1 · answered by ckm1956 7 · 0 0

Your understanding is not correct. Banks provide to commerce two basic functions: loans and cash vault services. Neither of these is a sure method of making money and if interest rates increase rapidly, say from inflation, banks can actually lose money.

Typically banks have a fairly thin profit margin. That is they don't make a lot of money by the standards of other industries.

If you think banks really make all the money, you will never understand banks and will be investing in them for all the wrong reasons.

You invest in banks like any other company. They have shares you can buy through a broker. You can also buy share units in mutual funds that include bank stocks for a more diversified and safer portfolio.

2006-11-23 02:56:50 · answer #2 · answered by Alan Turing 5 · 0 0

If that was true.... Everyone would be investing in Banks.

Banks (since the 1980's) have done well. That does not mean they will continue to do so. Follow an "asset allocation" that works for you and get rich slowly. READ READ READ. Learn investing. Don't use tips or information you've gotten from strangers (or most people you know).

2006-11-23 14:59:50 · answer #3 · answered by Common Sense 7 · 0 0

http://www.bankstockslist.com/

They are listed stocks just like any other. Of course, your supposition with regard to investing is ignorant and stupid. That sounds harsh, but a friend tells you such things without sugarcoating it....BEFORE you lose all your money.

Go learn about investing FIRST, before you invest. I mean the real stuff, not ignorant crap like you stated above. Read a book.

2006-11-23 01:44:06 · answer #4 · answered by Anonymous · 0 0

surely, many banks do have a brokerage arm. Smaller banks would might want to apply an outdoors brokerage. i believe that maximum banks do personal some stocks even although their corporation is assume to be lending money no longer speculating contained in the inventory marketplace.

2016-11-29 09:48:43 · answer #5 · answered by ? 4 · 0 0

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