Should i buy shares in lloyds
Early next year, ordinary people will get the chance to buy shares in one of the banks that they bailed out with taxes after the financial crisis in Up to now, institutional investors have bought up shares in Lloyds as they have become available through the steady drip of 1 per cent tranches sold off by Osborne and the treasury this year.
But now, ordinary people are encouraged to get involved. There even one-for bonus share for anyone who hangs onto the stock for a year.
Questor special: Should I buy Lloyds discount shares? - Telegraph
For a start there's the 5 per cent discount and the bonus scheme, which altogether means private investors are looking at a 15 per cent discount on what the shares would normally cost. Plus, there's the expected dividend income that comes along with being a shareholder.
It is estimated that that will be about 4 per cent of the share price, which a much better rate that most savings accounts are currently offering.
For the Journey: Should you buy shares in Lloyds Bank? - BBC News
Bank shares are also seen as a play on economic growth, which is expected to hit 2. Since its bailout Lloyds bosses have been working to turn the bank around and their efforts have been bearing fruit. As with any stock, share prices can go down as well as up, so there is always a risk investing in such assets.
And while the discount may seem generous, the full 15 per cent offer is only available to those who hold onto their shares for a year, in which time the share price could fluctuate.
It's also worth bearing in mind that Lloyds is exposed to the property market as a large portion of its lending involves mortgages.
There could therefore be a knock-on effect on the bank if the housing market suffers, or if mortgages get more expensive to repay as the interest rates rise. Banks are also having to deal with a lot of new regulation and it's not yet clear what the total impact of the changes will be on profitability. The government hasn't released should i buy shares in lloyds full details of how it quotes on the stock market crash work, but if it's like the Royal Mail privatisation it's likely that retail investors would be able to pick up shares through brokers like Hargreaves Lansdown and Barclays.
At this stage, all prospective buyers should do is register their interest here.
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Should you buy shares in Lloyds?
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