Differences between Investing vs Trading
Differences between Investing vs Trading
Credit Suisse was founded by Alfred Escher in 1856 as the Swiss Credit Institution, a bank providing loans to traders and merchants. By the time of the Panic of 1873, the bank had become one of the largest in Switzerland. In 2013, Credit Suisse agreed to pay $885 million to US federal and state authorities to settle claims that it had helped American citizens evade taxes.
In 2020, Credit Suisse reached an agreement with the US Department of Justice to pay $5.3 billion as part of a deferred prosecution agreement, in connection with its role in the sale of toxic mortgage securities leading up to the financial crisis of 2008. This was the second-largest such settlement by a Swiss bank, after UBS's $780 million settlement in 2018.
The Credit Suisse share price has had a volatile history, but overall it has trended downwards since 2009. In recent years, the share price has been affected by various political and economic events.
More recently, in 2016, Credit Suisse was fined $5.3 billion by the US Department of Justice for its role in the sale of toxic mortgage-backed securities. This caused the share price to drop sharply.
As of October 2022. with rumours spreading about the liquidity in Credit Suisse (NYSE:CS), investors are expecting turbulent trading sessions for the bank’s stock this week. The share price is currently trading at 0.22 price/book ratio and is down 60% over the last 12 months (at the time of writing). This is possibly the most critical time in the Swiss bank’s 166 year history.
Invest or trade Credit Suisse shares? This is a question that many investors face when they are considering investing in this Swiss multinational financial services company. While both options have their own risks and rewards, there are some key differences between them that investors should be aware of before making a decision.
When you invest in Credit Suisse shares, you are buying a piece of the company and becoming a shareholder. This means that you will be entitled to dividends (if the company declares them) and have a say in how the company is run (via voting rights at shareholder meetings). However, you will also be subject to the ups and downs of the stock market – if Credit Suisse’s share price falls, so will the value of your investment.
Trading Credit Suisse shares via a CFD (contract for difference) gives you exposure to the company’s share price movements without actually owning any shares. This means that you can make money from both rising and falling prices, and you are not entitled to dividends or voting rights. However, you will have to pay commissions and/or spreads on each trade, and there is a risk that you could lose more money than you initially invest.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
What are the key drivers affecting Credit Suisse's stock price?
Several key drivers may significantly influence Credit Suisse's stock price. Financial performance, including factors like revenue, net income, and return on equity, is a primary driver. The bank's stock price is also sensitive to the regulatory environment, as changes in banking regulations or non-compliance fines may affect profitability. Broader economic conditions such as interest rates, inflation, and GDP growth may also influence the stock price.
Additionally, market sentiment towards the banking sector may drive the stock price up or down. Lastly, operational issues related to risk management or corporate governance may also impact the bank's reputation and its stock price.
Who owns most Credit Suisse shares?
The ownership of Credit Suisse shares is distributed among various types of investors. Institutional investors, such as mutual funds and pension funds, often hold significant stakes. These large investors may influence the stock's price through their trading activities. Individual retail investors also own a portion of the shares.
The exact distribution of ownership may change over time based on buying and selling activities. For the most current and detailed information about Credit Suisse's share ownership, it's best to check the latest filings with the Swiss exchange where its shares are listed.
Does Credit Suisse pay dividends on its shares?
Traditionally, Credit Suisse, like many banks, has paid dividends to its shareholders. The decision to pay dividends depends on several factors, including the bank's profitability, its capital requirements, and the economic outlook. Dividend payments may be a way for companies to distribute surplus earnings back to shareholders, providing an additional return on investment (ROI).
However, the exact amount and frequency of these payments may vary year by year. Investors interested in Credit Suisse's dividend payments should check the bank's latest financial reports or announcements for the most accurate information.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.