What's Going On With JPMorgan Chase (JPM) Stock?

JPMorgan Chase & Co (NYSE:JPM) shares are trading higher Wednesday afternoon. The stock is gaining following a report from Bloomberg that top U.S. regulators are planning to significantly reduce capital requirements for the nation’s largest banks.

What To Know: According to Bloomberg, the Federal Reserve, FDIC and OCC are set to lower the enhanced supplementary leverage ratio, a key capital buffer. The proposal would decrease the required capital from 5% to a range of 3.5% to 4.5% for bank holding companies like JPMorgan.

This easing of regulations, which Bloomberg reports will be discussed at a Federal Reserve meeting on June 25, is seen as a major victory for Wall Street. The move is expected to free up substantial capital for JPMorgan Chase.

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Analysts suggest this could lead to increased share buybacks, higher dividends for investors and expanded capacity for profitable trading in the crucial U.S. Treasuries market.

Furthermore, the reduced capital burden could empower JPMorgan to expand its lending activities to both corporate and consumer clients, driving core revenue growth. The regulatory relief may also enhance the bank’s competitive standing against large European and Asian rivals who operate under different capital frameworks.

Price Action: According to data from Benzinga Pro, JPMorgan shares are up 1.72% to $274.13 Wednesday afternoon. The stock has a 52-week high of $280.25 and a low of $190.90.

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How To Buy JPM Stock

By now you're likely curious about how to participate in the market for JPMorgan Chase – 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 JPMorgan Chase, which is trading at $274.13 as of publishing time, $100 would buy you 0.36 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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