MasterCard is a successful company that can certainly be worth an investment. After the company went public in 2006, its share rose by more than 6000% or 37% on an annual basis. But how & where is the best place to buy MasterCard shares? In this article you can find all the information you need plus you can consult the latest stock price here.
How can you actively invest in MasterCard?
MasterCard's share price has been moving upwards since the IPO. However, there are sometimes small dips in the price development. When the corona crisis broke out, for example, you saw that the share price temporarily fell sharply. However, it did not take long before the upward trend continued.
As an active trader, you can profit perfectly from all types of price movements. It is even possible to apply leverage to increase the results of your trades. Both your potential loss and your potential profit will then increase. Would you like to actively speculate on MasterCard's price movements yourself? You can do this by using CFD's at the broker Plus500. Use the button below to open an account directly:
Where can you buy MasterCard shares?
MasterCard can be a good investment. In any case, the history of the share is promising: the share has risen enormously in value and actually had few serious corrections. People increasingly pay with credit cards via the Internet, which is of course perfect for MasterCard.
However, it is advisable to wait for a good time to buy. You can do this by using a limit order. With a limit order, you set a price at which you buy the MasterCard shares. You can buy MasterCard shares at eToro at an advantageous price: you never pay commissions when you use this broker. With the button below you can open an account with eToro directly:
What is MasterCard's stock price?
Would you like to know how MasterCard's share price is developing? The graph shows the price at which you can buy and sell the MasterCard CFD share. With the buttons, you immediately open an investment position.
About the company MasterCard
What does the American company MasterCard do? This international company issues worldwide licences to issue credit cards. The international credit cards licensed by MasterCard can be used in 200 countries.
MasterCard achieves 40% of its turnover in the United States. The percentage of sales made in other countries is always less than 10%. After VISA the credit card company MasterCard ranks second. The company employs approximately 10.000 people.
In addition to credit cards, Mastercard also has three debit services.
- Maestro is a debit payment card based on a PIN code.
- MasterCard Prepaid is a prepaid credit card based on PIN code or signature.
- Cirrus can only be used at ATMs
In 1966, the International Card Association was founded by various banks. Three years later, the name of the company was changed to Master Charge and the company was also given the well-known two intersecting circles as its logo. This logo is depicted on all credit cards.
After a name change in 1979, the company was called MasterCard. MasterCard worked for decades with Europay, which merged in 2003. Until 2003, MasterCard used the name EuroCard for working in Europe. In 2006, the name of the company MasterCard International was changed to its current name MasterCard Inc. The company's logo is then given three circles. However, the logo depicted on the credit cards with two circles will not be changed.
Mastercard goes to the stock market
In 2006 Mastercard went public. The company is listed on the New York Stock Exchange. Until 2006, banks and financial institutions owned the company completely. After the IPO, approximately half of the shares came into the hands of investors.
In 2014, approximately 87% of the shares were freely tradable on the stock exchange. The Canadian foundation The MasterCard Foundation owns approximately 10% of the shares in that year. The proceeds of this capital are used by the foundation for good causes.
Breach of competition law
The European Commission fined Mastercard €570.566.000 in 2019 for breaching competition law. According to the European Commission, the company had abused its dominant position by artificially inflating transaction fees for card payments for merchants.
According to Mastercard's rules, the level of the interchange fee to be paid by the merchant's bank to the cardholder's bank was determined by the country in which the cardholder was established. As a result, merchants could not benefit from the lower fees offered by banks in other Member States.
These interchange fees could vary considerably from one Member State to another until 2015. In that year, the European Commission limited the interchange fee to 0,2% (for debit cards) and 0,3% (for credit cards). MasterCard, which had admitted a breach of competition law, adapted its rules. The European Commission decided to reduce the fine by 10%.
These kinds of huge fines can have major consequences for Mastercard's business results. In the short term, it could put pressure on the share price. Fortunately, as an active trader you can respond to this by opening a short position. With a short position, you can even achieve a good result when the price falls. In the long term, however, it can also damage the company's reputation.