preview

Should You Buy Lloyds Shares?

Decent Essays

1 – Should you buy Lloyds shares?

Lloyds are a high street bank that has been through the ringer during recent years, having not faired particularly well in the post credit-crisis era. However, it seems that under governmental control Lloyds has stabilised as a banking outfit. Financially the bank is now on level footing, while they have also re-entered the stock market fray to moderate success with a notable public offering of Lloyds shares. As Lloyds shares continue to float around investors portfolios, it seems that the door is being opened for those who have already invested to buy more at a discounted rate. By all accounts £2 billion in Lloyds shares will be up for grabs during Spring 2016, with current investors being given 5% discount on any additional stock purchased.

Everyone knows that savvy traders are constantly on the hunt for a bargain, which is exactly what Lloyds shares could represent given the deal being offered. Breaking down its credentials, Lloyds shares traded at 77.4p during October 2015, taking that figure as an example, a 5% discount would bring the cost of Lloyds shares down to 73.5p. While the 5% is considered the key incentive to buy, it doesn’t stand alone as the only incentive. The £2 billion sale of Lloyds shares, also has a ‘1-for-10 bonus’ attached to it, should a trader hang on to the shares they acquire for longer than 12 months. Should a trader opt in on all bonus incentives, taking the aforementioned price as an example, it could drop

Get Access