What's Going On With Bank of America Shares Tuesday?

Bank of America Corporation BAC stock is moving lower on Tuesday. Warren Buffet’s Berkshire Hathaway, Inc. BRK sold more of its stake in the company.

What To Know: Berkshire Hathaway sold shares worth more than $550 million, at an average price of $39.50 per share, over the past few days, according to Barron’s.

After the recent sale, Berkshire now holds about 928 million shares in Bank of America worth approximately $37 billion. Berkshire’s current stake is equal to about 12% of outstanding shares, according to Wall Street Journal.

If Berkshire’s stake in the company were to drop below 10% it would no longer have to report sales within two business days. The company previously sold Bank of America shares during July and has now sold about 100 million shares total.

The company throughout recent years has eliminated its stake in other banks, such as Wells Fargo and Bank of New York Mellon. Berkshire currently has a 3% stake in Citigroup, according to Barron’s.

How To Buy Bank of America Shares

By now you're likely curious about how to participate in the market for Bank of America BAC – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Bank of America BAC, which is trading at $38.76 as of publishing time, $100 would buy you 2.58 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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BAC Price Action: Bank of America shares are moving 2.29% at $38.76 at the time of writing, according to data from Benzinga Pro.

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