What's Going On With Wells Fargo (WFC) Stock?

Wells Fargo & Co (WFC) shares are trading higher Wednesday morning following reports that top U.S. regulators are planning to ease capital requirements for the nation’s largest banks.

What To Know: Bloomberg reported that the Federal Reserve, FDIC, and OCC are considering a proposal to lower the enhanced supplementary leverage ratio (eSLR). This rule mandates how much capital large banks must hold against their assets.

According to Bloomberg, the plan would reduce the required capital buffer, potentially freeing up significant funds on bank balance sheets. The proposed change, which Bloomberg notes could be discussed as early as June 25, is seen as a significant win for the banking industry.

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Investors are reacting positively to the news, as reduced capital constraints could enhance bank profitability and could lead to increased shareholder returns through dividends and stock buybacks.

The move is also intended to improve liquidity in the U.S. Treasury market by making it easier for banks like Wells Fargo to act as intermediaries.

Price Action: According to data from Benzinga Pro, WFC shares are trading higher by 2.11% to $74.03 early Tuesday. Wells Fargo’s 52-week high is $81.50 while its 52-week low is $50.15.

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How To Buy WFC Stock

By now you're likely curious about how to participate in the market for Wells Fargo – 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.

In the case of Wells Fargo, which is trading at $74.03 as of publishing time, $100 would buy you 1.35 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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