AMERICAN EXPRESS (AXP) Stocks
ABOUT AMERICAN EXPRESS
📊 The American Express Company is an American multinational financial services corporation. It is also known as Amex. The company is one of the 30 components of the Dow Jones Industrial Average. American Express Company is a global travel and payment company and best known for its credit card, charge card and traveller’s cheque businesses.
📊 Another product offered by Amex is Corporate Banking. Its services are divided into Finance, Insurance and Travel. American Express’ history dates back to 1850 when it was founded in Buffalo, New York.
📊 In 2019 its headquarters is in the Three World Financial Center in New York City. The company has more than 55 000 employees. American Express’ logo was adopted in 1958 and is still used today. The logo is a gladiator or centurion and the image appears on all the charge and credit cards as well as the traveller’s cheques.
📊 Some of its subsidiaries are Travel Impressions, Ltd., AMERICAN EXPRESS CENTURION, American Express Australia Ltd., American Express Banking Corp., Amex (Middle East) B.S.C., American Express Assurances and American Express Thai.
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OVERVIEW OF AMERICAN EXPRESS
- American Express starts as an express mail business in Buffalo, New York in 1850. The company is founded as a joint stock corporation when express companies Wells & Company, Livingston, Fargo & Company and Wells, Butterfield & Company merge. Amex establishes its headquarters in Manhattan and has a virtual monopoly for years moving express shipments such as securities, currency and goods throughout the State of New York.
- In 1903 American Express has assets of more than $28 million. Through the years the company buys and sells buildings as it expands. The company extends its reach countrywide by affiliations with other express, steamship and railroads companies.
- In 1857 it starts expanding its financial services by launching a money order business – competing with the U.S. Post Office’s money orders.
- The American Express Traveler’s Cheque is launched in 1891 – establishing American Express as an international company. Amex is appointed as the British government’s official agent at the beginning of World War I. The company delivers relief parcels, money and letters to British prisoners of war.
- By the end of the war Amex is delivering 150 tonnes of parcels per day to prisoners in six countries. American Express Company embarks on an effort to become a financial services super-company during the 1980’s. It makes a number of acquisitions to create an investment arm to the business.
- In 2008 during the financial crisis of 2007-2008, Amex wins Federal Reserve System approval and converts to a bank holding company. This makes it eligible for government assistance falling under the Troubled Asset Relief Program. At this time Amex has total consolidated assets of approximately $127 billion.
- In June 2009 TARP funds to the value of $3.39 billion are repaid – plus $74.4 million in dividend payments. A month later the company ends its obligations under TARP by buying back Treasury warrants to the value of $340 million. Credit cards using the Amex network accounts for 22.9% of the total dollar volume of credit card transactions in the United States in 2016.
- The company has more than 112.8 million cards in force as of December 31, 2017. Forbes names American Express the 23rd most valuable brand in the world as well as the highest within financial services in 2017. Forbes estimates the Amex brand to be worth $24.5 billion.
- Fortune ranks Amex the 16th most admired company worldwide and the 23rd best company to work for in 2018. Fortune 500 also ranks Amex at number 86.
VALUES OF AMERICAN EXPRESS
- American Express’s unwavering commitment to earn its customers’ loyalty has remained unwavering as the business transformed from freight forwarding to travel to cards to innovative digital products and services.
- The company volunteers with and supports organizations that develop the next generation of leaders, encourage community service and civic participation as well as preserve and sustain historic places.
- Amex recognizes that its responsibility to its colleagues and customers extend to their ecosystems. The company helps to preserve natural resources for future generations and limits its environmental impact.
MARKET PERFORMANCE OF AMERICAN EXPRESS
- American Express Company trades on the New York Stock Exchange under the NYSE Stock Symbol “AXP”.
- In 2018 the company delivered more than $40 billion in revenue – an all- time high. It added 12 million new card members.
- Amex also added more than 1.5 million new merchant locations in the United States while posting double-digit growth in its international merchant network.
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LATEST NEWS AMERICAN EXPRESS
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy AMERICAN EXPRESS Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN AMERICAN EXPRESS STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE AMERICAN EXPRESS STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of AMERICAN EXPRESS stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy AMERICAN EXPRESS stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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