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- You can buy Apple shares by creating an account with an online broker.
- It’s wise to review a company’s performance and finances to make sure it’s a safe investment.
- It is best to develop an investment strategy and regularly monitor your investment after buying stocks.
Tech giant Apple made its public debut in 1980, listing its stock at $22 per share. Its stock – which currently sits near $150 – has fluctuated over time, splitting five times since 1980 and reaching an all-time high of $180.96 on January 3, 2022.
If you want to add Apple shares to your investment portfolio, you will have several options to do so. Among these is the path of the financial adviser. However, if you prefer to invest or trade on your own, you can start with an online brokerage.
1. Create a brokerage account
To invest in Apple, a retail investor needs an account eligible to hold securities; they’re called brokerage accounts, says André Jean-Pierre, investment adviser and managing director at Aces Advisors Wealth Management.
“These accounts may or may not be taxable; taxable accounts — also called non-qualified accounts — are funded with after-tax dollars, where you can buy and sell stocks and other securities.”
Brokerage accounts facilitate market access, allowing you to invest in stocks, options, ETFs, mutual funds, bonds, and more. Individual accounts will generally be your best option, but you’ll want to use a joint account if you plan to invest with a partner. And while IRAs are another option, they may not be the safest choice since Apple shares have had a volatile history.
Additionally, there are several online brokers and investment platforms to choose from, but the best one offers $0 minimum requirements for self-directed trades, commission-free investing, web and mobile access, and extensive customer support. .
Additionally, you may be able to purchase fractional shares depending on your brokerage. As of Nov. 18, 2022, Apple’s current price is over $150, so fractional shares might be ideal for those who still want exposure without paying that full amount for a share.
And if you prefer lower-risk options like ETFs, mutual funds, and index funds, you can still get exposure to Apple by focusing on funds, such as the Vanguard 500 Index Fund, Simplify Volt Cloud and Cybersecurity Disruption ETF, and the Fidelity 500. Index fund — which offer it.
2. Research Apple Finances
It is important to do your due diligence on a company before becoming a shareholder. Several resources – including balance sheets, recordings of recent shareholder meetings, quarterly company earnings reports, income statements and market analysis – can help you ensure that it is in good shape. good financial health.
“Apple is a good stock to buy for anyone looking to own a stable company that pays a consistent dividend. [and] which also continues to grow in new markets,” says Jean-Pierre. “While they’re not growing at the rate they used to, Apple is one of the companies I classify as Large-Cap Growth that also pays a dividend to owners. the company.”
And while it’s useful to analyze a stock’s historical performance, you’ll also want to regularly pay attention to news that affects the company and its industry. As we saw recently in 2022, the economy can also significantly influence the stock market, causing downturns and forcing investors to endure inflation and rising interest rates.
Apple and other blue-chip stocks like Tesla and Amazon have also been particularly volatile, so it may not be an ideal choice for a risk-averse trader or those approaching retirement.
3. Determine the amount to invest and place an order
How much you decide to invest or trade and how often you contribute largely depends on your personal goals, risk tolerance and time horizon. This will vary from person to person, and it’s always wise to make sure you have a solid emergency fund before buying stocks.
“Investing is very different from trading,” explains Jean-Pierre. Trading, he added, seeks to outsmart the overall market by finding price inefficiencies to take advantage of. “However, investing is about owning and reaping the long-term benefits of owning growing businesses, so that you can participate financially in their growth.”
Moreover, the type the order you use is crucial when it comes to getting the stock price you want. Your order type basically tells your brokerage the price at which you want your order to be executed. You will generally have access to four types:
- market order: These orders are executed immediately, so your price per share will represent the current value of your share. These orders don’t let you set the stock price you want them to execute at, so they’re not a good idea for anyone looking to save money and beat the current market value of the action.
- Limit order: With limit orders, you can set a price threshold for your shares. For example, if Apple is trading at $150 and you set a limit order for $148, the brokerage will only complete your order if the stock’s value falls to that price.
- stop order: These are also called stop-loss orders, and they give you the power to set a stop price for your investment. If your stock reaches this price, it will become a market order and will execute immediately.
- Stop limit order: You can also set a stop price for Apple with this order type, but the order will become a limit order once it hits that price, executing at that price or better.
Once you have chosen your order type, you will then be ready to buy the stocks and develop an investment strategy to grow them.
4. Review your purchase and monitor your order
After you place your Apple stock order, you’ll want to confirm that the brokerage filled the order and everything looks good. After this step, it’s wise to monitor your investment from time to time to make sure it’s performing against your goals and return expectations.
You’ll also want to develop a solid portfolio strategy to keep your investments on track. You will generally have two options: buy and hold and average purchase.
The first strategy is a more passive approach to wealth creation. You invest a lump sum in a stock and hold that investment until you are ready to sell. With this approach, the hope is that the value of the investment will have skyrocketed exponentially by the time you plan to cash out.
With this last strategy (average purchase in dollars), you can gradually buy shares of Apple. Whether the frequency of these contributions is weekly, monthly or yearly is entirely up to you. But it’s also crucial to note that neither method is immune to market fluctuations, so it’s wise to keep that in mind when investing.
“It’s important to know that over time, growing investment in successful businesses is a more stable path to prosperity than guessing prices week after week into an unknowable future,” Jean-Marc said. Rock.
How to Sell Apple Stock
Selling stocks is as easy as buying them. You can usually do this by going to the “trade” section of your investment platform’s website or mobile app. The platform will give you the option to sell either a certain number of shares or a dollar amount, although this may vary depending on the investment you are selling.
Also, it is important to note that when you sell stocks, you will be liable for capital gains taxes when tax season arrives. And you will pay more or less, depending on how long you hold the investment. For example, short-term capital gains taxes apply to investments you’ve held for a year or less, while long-term capital gains taxes apply to investments you’ve held for more than a year. . Taxes on short-term capital gains are generally higher than taxes on long-term capital gains.
The bottom line
If you want to get a share of Apple shares, you must first create a brokerage account. But before you place your order, it’s essential to make sure you’ve done your homework on the company’s financials and historical performance. This can give you a better idea of whether a stock will be a profitable investment.
Moreover, you can not only gain exposure to Apple through individual stocks, but also funds containing Apple. But you’ll want to make sure your strategy aligns with your overall risk tolerance, investment goals, and budget.
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