Trade Prudential Shares

Prudential (PRU.L)

About

Established as the Prudential Mutual Assurance and Loan Association in 1848, today they are an international retail financial services company with significant operations in Asia, the US and the UK. The purpose is to promote the financial well-being of our customers and their families, with a particular focus on saving for retirement and security in retirement.

Industry

Life Insurance

Website

www.prudential.co.uk

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Prudential and Market Latest News

Yahoo! Finance: PRU.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)
UPDATE 1-AIA IPO adds Goldman to list of top handlers-sources (Other)
UPDATE 1-Eurotunnel warns of 2010 loss if insurance unpaid (Other)
Eurotunnel warns of 2010 loss if insurance unpaid (Reuters MOLT)
Benmosche tightens grip on AIG with new AIA boss (Reuters MOLT)
UPDATE 3-Benmosche tightens grip on AIG with new AIA boss (Other)
Ex-Pru CEO Tucker named AIA boss ahead of IPO (Reuters MOLT)
UPDATE 2-Ex-Pru CEO Tucker named AIA boss ahead of IPO (Other)
AIG names ex-Pru CEO Tucker AIA boss and revives AIA IPO (Reuters MOLT)
UPDATE 1-AIG names ex-Pru CEO Tucker AIA boss, revives AIA IPO (Other)
AIG says ex-Pru CEO Mark Tucker to head AIA (Reuters MOLT)
PRESS DIGEST - Financial Times - July 19 (Other)
AIG to name ex-Pru CEO to head AIA unit - source (Reuters MOLT)
UPDATE 2-AIG to name ex-Pru CEO to head AIA unit-source (Other)
UPDATE 1-AIG to name ex-Pru CEO to head AIA unit-source (Other)
AIG names Miller chairman, Golub resigns (Reuters MOLT)
UPDATE 3-AIG names Miller chairman, Golub resigns (Other)
UPDATE 2-AIG names Miller chairman, Golub resigns (Other)
Copyright (c) 2010 Yahoo! Inc. All rights reserved.

Prudential: 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 Prudential shares (Prudential share price is 450p). Supposedly, you think that Prudential shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

4,444

4,444

222

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


Prudential: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Prudential 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.