Founded in 1850, American Express was initially created as an express mail service. AMEX as it is also known, steadily expanded into money orders and travellers’ cheques. It was a small step from there that took this oldest established North American business into the world of credit cards and financial advice.
Following an early joint venture with the market leaders of the time Wells Fargo, American Express was initially limited to a small number of the company’s subdivisions specialising in steamship and railway businesses. The company was made responsible for delivering mail to prisoners of war when AMEX was appointed the official rep of postal services by Britain’s government during the First World War.
American Express has risen to become a market leader in financial services and it has achieved this status through several acquisitions on its way up. The giant corporation is now a household brand name that has become a byword for financial services around the world.
Trading American Express
- Unlike their main competitors in the credit card sector, AMEX is not a universally accepted payment in as many outlets. This is because AMEX fees are among the highest in the industry compared with Visa and MasterCard.
- Despite the issues of fees, American Express has continued to thrive on the company’s quality brand image through the delivery of higher standards of financial services.
- AMEX trades on the New York Stock Exchange and is one of the 30 companies listed on the Dow Jones Industrial Average.
- Thanks to the use of yearly and quarterly reporting, traders have access to fairly recent information on companies such as American Express. This can be an invaluable aid when assessing their stock, as financial institutions are especially susceptible to market and currency shifts.
American Express (AXP) is likely to be a very volatile stock and trading requires state-of-the-art technology. Educational tools and charting packages found at Almahfaza are an ideal method for tracking and assessing values in real time.