How To Buy A Share Of Amazon Stock
Whether you want to use your money to make a major purchase or to invest in another company, there will come a time when you want to sell your shares of AMZN stock. To do so, simply enter your brokerage or investment app trading platform, type in the ticker symbol and select the amount you want to sell.
how to buy a share of amazon stock
For example, if a stock is trading at $180 per share, and the company offers a two-for-one stock split, a shareholder currently holding a single share at $180, following the split, would now hold two shares valued at $90 each.
Choosing to buy a single share of Amazon depends on your own portfolio needs, risk tolerance and budget. Amazon is not as expensive as it once was, but as a leading tech company, the stock can still be prone to price swings dependant upon external factors.
Since going public on May 15, 1997, Amazon stock has split four times. The company issued a 20-for-one stock split on June 6, 2020, a two-for-one split on September 2, 1999, a three-for-one split on January 5, 1999 and a two-for-one split on June 2, 1998.
Most investors look for sound fundamentals, including a track record of consistent earnings growth, a strong market position or products or services with future growth potential. These should provide a solid platform for future share price growth.
The ticker symbol for Amazon Inc is AMZN. It is listed on the technology-focused Nasdaq exchange in the US, which is open for trading from 9.30am to 4pm (Eastern Time). You should be able to buy US shares through most brokerage accounts.
You will be asked to complete a W-8BEN form (valid for three years) which allows you to benefit from a reduction in withholding tax for qualifying US dividends and interest from 30% to 15%. Holding US shares also carries exposure to foreign exchange risk. If the pound strengthens against the dollar, your shares will be worth less in sterling (and vice versa).
The quickest and easiest way for individuals to buy Amazon stock is to open up a brokerage account, according to Kavan Choksi, investor, founder, and business management and wealth consultant at KC Consulting.
If you're investing in Amazon stock for the first time, he says, you should choose a brokerage that best suits your style of investing, consider the features you want your account to include, and compare the fee structures between different brokers to determine which one best meets your needs.
Brokerage accounts not only expose you to a variety of stocks, but they also let you invest in other types of assets, including ETFs, mutual funds, options, bonds, and more. And while not all brokers let you skip out on trading fees, the best platforms offer things like commission-free trading (i.e., you won't have to pay a commission each time you exchange investments like stocks, ETFs, and options), multiple account and investment types, fractional shares, and flexible customer support.
"Buying Amazon stock directly has become a lot easier and more accessible to retail investors since their 20-for-1 stock split in early June 2022," Choksi says. "Immediately after the split was executed, Amazon shares were trading at $125 per share, and have since dropped further to around $115 per share in recent days."
Note: Though one approach to Amazon is to buy the company's stock directly, you can also invest in mutual funds or ETFs that contain a percentage of the company. However, this may not always be the best move, according to Choksi.
"Funds that have exposure to Amazon often run the risk of being dragged down by other stocks and assets in the portfolio that are unrelated. Many investors are quite bullish on Amazon at the moment, so there is more scope and opportunity for upside gain if you buy Amazon directly."
If you're more of a long-term focused trader with an eye for less volatile investments, or if you're nearing retirement, you should exercise caution when investing in Amazon. The stock has proven to be particularly volatile, so it may not be a smart choice for risk-averse traders.
One of the best ways to build confidence in your decision to buy (or sell) a stock is to thoroughly research things like the company's historical performance, earnings reports, balance sheets, and financial statements. Another good move for developing market knowledge is to keep up with all news pertaining to that stock's industry, as well as other industries and assets, according to Choksi.
Now that you've decided Amazon stock is right for you, you'll need to determine how much to invest in it initially (and you'll later want to consider how frequently you'd like to buy more shares). But the initial investment amount varies per trader. Only you can decide which amount best suits your financial situation, and you'll want to make sure it aligns with your risk tolerance, time horizon, personal budget, and investing goals.
But before you select an amount and place an order, experts recommend having an emergency fund (a savings fund with three to six months worth of living expenses) in place. This will help prevent financial hardship if your stocks succumb to temporary market downturn.
While you can't control the market or its fluctuations in price, you do in fact have a say over the price you pay for shares. This can help you invest in stocks like Amazon while keeping a good handle on your budget and personal finances.
After you've bought your shares, you'll need to put a strategy in place for multiplying your returns. And you can do so without watching Amazon's stock chart every hour (unless you're a day trader). There are a couple of strategies you could use to get started. These include (but aren't limited to) the following:
However, if you ever need to sell, you can typically either enter in a dollar amount or number of shares on your broker's website. Note, however, that capital gains taxes apply to investments you've sold.
Before you sell your Amazon stock, you may want to meet with an expert to see if it's in your best interest to sell now. This could include a financial advisor if you have one, or a tax professional who can explain how selling will affect your taxes.
The exact information you'll need to enter will depend on which type of service you're using. In many cases, you'll select "sell" and enter the stock symbol, which is AMZN for Amazon. Then you'll enter how many shares you want to sell and which type of order you're putting in (e.g., a market order or stock order).
Amazon stock last closed at $103.29, up 1.26% from the previous day, and has decreased 36.63% in one year. It has underperformed other stocks in the Internet Retail industry by 0.23 percentage points. Amazon stock is currently +26.85% from its 52-week low of $81.43, and -38.66% from its 52-week high of $168.39.
When you buy and sell shares of stock on the market, you need to use a broker. Most brokers offer online brokerage accounts that allow you to invest without too much trouble. Some of the more traditional brokerage accounts are Schwab and Fidelity. You can also use one of the best online brokers.
When you trade with a brokerage account, you have the most control over when and how you trade. You will likely be able to place market orders, limit orders, and other order types. However, as you decide how to choose a brokerage, take into account that you might need to buy full shares or meet an account minimum. For some investors, this can present a financial obstacle to getting started in the stock market. In the past, some brokerages also charged transaction fees for each trade, but some brokers have waived those fees in recent months.
So, in the case of Amazon, you might be able to purchase an eighth of a share. You would only need to invest $375 to get an eighth of a share of Amazon, instead of needing to come up with $3,000 at once. Over time, you could keep buying fractional shares and benefiting if stock prices rise. Even without a full share, your investment will gain in value if the stock price goes up. In this way, you can still reap the potential benefits of buying Amazon stock without a large outlay of money upfront.
Stash has additional convenient investing features as well. You can set up automatic transfers of as little as $5 and automatically invest in fractional shares of any available stock. Stash also offers banking products that can complement your investments and even earn you Stock-Back rewards when you use your debit card. 5, 3
As of this writing, a share of Amazon (AMZN) costs a little less than $3,000 (midmorning July 24, 2020). However, stock market prices fluctuate daily, so the actual share price will depend on the cost at the timing of your purchase. Additionally, if your broker charges transaction fees, those need to be added to your final cost.
You can also buy fractional shares of Amazon by using certain online trading platforms that allow you to purchase a portion of a stock without needing to pay the full amount for a full share. In that case, you might be able to buy a fractional share of AMZN stock for much less than the full stock price.
Yes, there are brokers and online trading services that offer the ability to purchase fractional shares of Amazon stock. Before opening a brokerage account or setting up an online trading account to buy Amazon stock, check to see whether the service offers fractional shares. Not every stock trading service offers fractional shares, and it\u2019s not possible to get fractional shares of every company.
Whether Amazon is a good stock to buy depends on your goals and financial situation. Some analysts believe based on its past performance that it still has room to increase in value, so buying stock could mean portfolio growth down the road. However, you still have to do your due diligence and recognize there\u2019s always the possibility of loss when you invest. 041b061a72