Visa securities have a high level of liquidity. This financial instrument has moderate volatility. The average daily rate is 2-3%. Sometimes stock quotes change by 4-6%. The average daily trading volume reaches USD 8 million.
Visa’s capitalization is USD 300 billion. Its shares are traded on the New York stock exchange. The corporation systematically pays dividends to shareholders. Their size varies from 0.6% to 0.8%. In monetary terms, their volume is steadily growing. The acquisition of these securities for dividends cannot be called an excessively profitable investment. At the same time, trading in this asset is capable of producing much greater profits.
The company is well known all over the world. Its activity is mediation between banks issuing Visa cards. Most of the ‘corporation’s profits come from commissions charged for network maintenance.
IBM was founded in 1958. At this time, Bank of America issued the first bank card, which was called BankAmericard. The popularity of the payment system has been continuously growing. A separate company was founded to serve it. It received the name – BankAmericard Service Corporation. It was engaged in the service of cards and sold their license to other financial organizations.
By purchasing a license, banking institutions became part of the association of card issuers. The name Visa appeared only in 1976. Changing the name of the payment system was necessary to promote the services of the company in other countries. The Vietnam War hit the United States badly. Therefore, the name of the payment system was changed so that it was not associated with America.
The Association of Banks of Issuers was merged into one company in 2007. Then a new company was created – Visa Inc. The main office of the corporation is located in New York. A subsidiary company, Visa Europe, operates in Europe.
The payment system operates in almost all countries of the world. Visa cards are issued in two hundred states. This leads to the fact that many factors influence the stock quotes of a company. Of paramount importance to the company’s profitability is the popularity of online payments. They significantly accelerated the development of the Visa system. The expansion of the target audience has dramatically increased profits.
The main competitors of the company are MasterCard and China UnionPay. The Chinese payment system is currently actively expanding. Competitors’ policies significantly affect the market share occupied by Visa. If it decreases, it will negatively affect the value of the company’s assets.
To successfully trade shares of this corporation, you need to be able to carry out the technical and fundamental analysis correctly. Each of these methods is important. The financial statements of the corporation will allow you to evaluate its prospects soon. Technical analysis makes it possible to determine the optimal entry and exit points of the market. You also need to use the rules of money management. You should not risk in one transaction the amount that exceeds 10% of your deposit.