The continued interest which global investment giant JP Morgan is showing in highly efficient CFD broker Plus500 (LON:PLUS) has manifested itself in the purchase of further stock by JP Morgan, taking its stake back up to 7.8%.
JP Morgan has purchased and sold large interests in Plus 500 since the summer of this year, with a high point having been reached in June, at which time JP Morgan had increased its stake in the company to over 14%. Since then, several instances of sale and purchase have taken place, which have resulted in the firm holding as little as 5% until this week.
The most recent transation, which took place yesterday, was reported by the London Stock Exchange as a purchase by JP Morgan of 3,242,889 shares, taking the total number of shares held by JP Morgan to 8,981,221.
An important consideration may be that this is likely a combination of JP Morgan buying Plus500 shares for its own account, a perfectly bona fide practice, as well as for JP Morgan clients who prefer to hold their shares of certain publicly traded companies such as Plus500 in the form of CFDs, for tax purposes. Under a circumstance such as this, JP Morgan would purchase the shares, and subsequently issue corresponding CFDs to those clients.
Chart courtesy of Bloomberg
For the official announcement from the London Stock Exchange, click here.