How can you buy Citigroup shares?
Citigroup is a large American bank. According to Forbes, the company was the largest company in the world in both 2000 and 2007. Citigroup is in the top 5 of the largest banks in the world. Other banks in the top 5 include Deutsche Bank and UBS. In terms of its activities on the capital market, the bank is a true world leader. The bank is also strong in bond and equity issues. The bank is headquartered in New York.
Do you want to invest in this large bank? In this article you can read how you can buy Citigroup shares.
Citigroup is nowadays seen as a reasonably stable & powerful share. During crises, the share price can plummet for a while. Investors then fear that many organizations and people who borrowed money will not be able to pay their loans back. When these defaults are lower than expected, the share price may recover. Especially during these kinds of price dips, it can be attractive to buy Citigroup shares.
I invest in Citigroup at eToro. This broker does not charge any commission at all. This can result in a higher return. Would you like to open an account with eToro to trade shares directly without commissions? Use the button to open a free account directly:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Citigroup is a perfect share to actively invest in. Bank shares are very volatile: especially in financially bad times, you can see that the price can drop significantly. This happened, for example, in 2008 when the price fell from $500 to less than $50. Also, during the corona pandemic, the share price dropped tens of percents. As an active trader you can achieve good results by speculating on these strong price movements.
You do this by using CFDs. With a CFD you can open a short position. With a short position, every stock price decrease is a profit for you as an investor. This can work out well with a volatile share. In addition, you can apply leverage. This can greatly increase both the potential profit as the potential loss of your trading position.
A good party to actively speculate on Citigroup shares with CFDs is PIus500. With PIus500 you can try the possibilities 100% risk free with a free demo. Use the button below to directly open an account:72% of retail CFD accounts lose money.
What is the current stock price of Citigroup?
The price of a bank share is cyclical and can therefore be volatile. The graph shows the price development of the CFD share Citigroup. With the buttons you can directly open a position on the stock.
The birth of Citigroup
Citigroup was founded in October 1988. After the company was founded Citicorp and Travelers Group merged. Citticorp was a large banking company active in 100 countries. The Travelers Group offered a wide range of financial services: credit cards, life and non-life insurance, consumer credits and securities trading. The two merger partners had a combined balance sheet value of 700 billion dollars. After the merger, the company was able to expand rapidly.
In 2001 Citigroup acquired Banamex. This is the second bank in Mexico. 12.5 billion dollars was paid for the acquisition. The bank bought Banamex to make it possible to expand into Mexico. In addition, the bank wanted to gain access to the 21 million Mexicans living in the US.
The bank had been active in Mexico since 1929. All Mexican banks, including Banamex, were nationalized in 1981. As one of the few foreign banks, the bank was granted permission to remain active in Mexico.
A big fine for Citigroup
In 2017, Citigroup was fined 11.5 million dollars. Why? For years, between 2011 and 2015, the bank had given incorrect advice to a number of customers. Brokers and investors received the incorrect advice to buy certain shares. This while the bank actually wanted to advise them to sell the shares.
This happened because of a technical defect. The supervisor warned the bank several times. The bank did not respond adequately and the problems were not solved.
Citigroup at the moment
This leading provider of financial services has approximately 200 million client accounts under management. These client accounts are spread over more than 100 countries. The company offers companies, government institutions, agencies and individuals a wide range of financial products and services.
Examples of these services are lending, corporate banking, investment banking, private banking, securities brokerage and asset management.
The units of the bank
Citigroup has three business units. The two most important units are Global Consumer Banking and Institutional Clients Group. The latter has mainly companies and institutional investors as clients. In terms of turnover, both groups are comparable in size. However, the latter group is more profitable. The third unit is Citi-Holdings. This is the group in which the non-core activities of the company are placed.