Trade G4S Shares

G4S (GFS.L)

About

G4S plc, formerly Group 4 Securicor plc, is engaged in the provision of security services (including manned security services, justice services and security systems) and the management and transportation of cash and valuables.

Industry

Business Support Services

Website

www.g4s.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

G4S and Market Latest News

Yahoo! Finance: GFS.L News
UPDATE 3-MOVES-HSBC, Raymond James, Putnam (Other)
UPDATE 2-MOVES-Citi, Guy Carpenter, Daiwa, Kobre (Other)
MOVES-UBS, Weiss group, Collins Stewart (Other)
City businesses to pay for own security squad [at Financial Times] (FT Times)
Companies moving into a huge new City office and retail complex will be asked to pay for their own dedicated police force, in a move some officers think will revolutionise relations between business and law enforcers.
Copyright (c) 2010 Yahoo! Inc. All rights reserved.

G4S: Financial Spread Betting vs CFD vs Share Dealing

Table below compares Financial Spread Betting, Contract For Difference and Share Dealing trading. For simplicity we use the average brokerage fees to calculate the profit/loss if £1,000 available for investment in G4S shares (G4S share price is 200p). Supposedly, you think that G4S shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

10,000

10,000

500

Shares go up by 10% in 1 month, Gross Profit

£2,000

£2,000

£100

Commission to open position (buy)

£60

£15

£12

Commission to close position (sell)

£0

£15

£12

Total Commission

£60

£30

£24

Financing for one month (5% LIBOR rate)

£108

£108

£0

Tax (20% band)

£0

£372

£15 + £5 (Stamp Duty)

Net Profit

£1,832

£1,490

£56


G4S: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with G4S shares, they are more suitable for short and medium term investments and cover a wide range of markets, including shares, indices, commodities and currencies. Share investing, on the other hand, is a conservative and old way of gaining financial independence and preserving capital. Even though some stockbrokers offer credit facilities it is very rare and not popular amongst private investors.

Risk Warning: Financial Spread Betting and Contracts For Difference (CFDs) are leveraged products and carry a high level of risk to your capital. You may lose more than your initial investment. Share price can go down as well as up and returns on investments are not guaranteed.