Blackrock is now a new shareholder of Plus500

Retail broker Plus500 is getting more and more popular by the day. London Stock Exchange received a standard form for notification of major holdings from asset manager Blackrock on Tuesday. It was noted in the form that Blackrock will now be holding Plus500’s shares, 7.02 percent to be exact. From that 7.02 percent, the asset manager requested that 4.85 would be shares and the rest to be through financial instrument not really mentioned in the form.

The main question is why such a huge interest in a not so large company all of a sudden? why did investors jump on the so-called “Plus500 bandwagon”? The answer is simple when you give it some thought. What do investors do when something is relatively cheap? they buy of course! unfortunately or Plus500 their share price dropped by a whopping 20% in mid-August, but the crisis for the company didn’t stop there as the disaster repeated itself soon after, because of the fact that the founders of the company found it necessary to sell off 8 percent of their company’s shares in order to bounce it back up.

However when a founder tries to sell their shares in the company, what does it do? what happens? well, most of the times the founders basically lose control of it and spiral out of control when they can’t directly influence the directions the company starts going in. So is it a call for investors to jump out and go somewhere else? or is it a call for gathering as new and more capable shareholders may be entering the fray.

What does the future hold?

Even though the first six months of 2018 were basically a blessing for the company, critics say that Plus500 has run out of gas and has nothing more to give, well we like to say that it has nothing more of the same to give, but is still functioning to this day. The critics also mention the fact that spike of their shares was created by the boom that cryptocurrencies had at that time, but as we all know cryptos are the most unpredictable things to trade with, therefore there might be another spike coming for Plus500 that nobody is able to spot yet.

Unfortunately, the latest regulations may be a detriment to the company’s revenues, therefore hindering its ability to return to the former glory it had just 6 months ago.

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Konstantin Rabin

About the Author: Konstantin Rabin

Konstantin has been working in the financial services industry since 2011. He is over-viewing various updates in the technology, regulation, and market movements. He's passionate about games and has a cute cat named Dog.

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