What's Going On With Bank Of America (BAC) Shares

Bank of America Corp BAC shares are trading higher by 10% to $45.92 in November following Donald Trump's win in the 2024 presidential election, as investors expect that his policies will create a favorable environment for financial institutions.

Trump's plans to expand on the 2017 Tax Cuts and Jobs Act, potentially lowering corporate tax rates further, would increase Bank of America's profitability.

Reduced taxes allow the bank to retain more of its earnings, which can then be directed toward expanding lending, enhancing shareholder returns or investing in new financial products.

What To Know: Deregulation is another factor that could benefit Bank of America under Trump's leadership. Trump has previously advocated for loosening financial regulations, particularly those imposed by the Dodd-Frank Act, which would give Bank of America more operational flexibility and reduce compliance costs.

Regulatory relief could support the bank's lending activities, making it easier to extend loans to both consumers and businesses. This is especially advantageous for Bank of America, one of the largest lenders in the U.S., as relaxed regulations could foster growth in its retail and commercial lending segments.

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What Else: Trump's policies on trade and infrastructure investment are also likely to impact Bank of America positively. As the administration emphasizes economic growth through trade incentives and substantial infrastructure spending, demand for credit may increase as businesses look to finance expansions and infrastructure projects.

For Bank of America, this could mean greater loan demand and increased fee income from advisory and investment banking services.

Finally, Trump's economic approach may lead to inflationary pressures, which could keep interest rates elevated. Higher rates would improve Bank of America's net interest margin, boosting earnings from loans.

Altogether, Trump's tax, regulatory, and economic policies provide a positive outlook for Bank of America's growth and profitability, driving investor optimism in the stock following the election.

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How To Buy BAC Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Bank of America’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, BAC has a 52-week high of $46.52 and a 52-week low of $29.20.