How to Buy Afterpay Shares | Step-by-Step Guide to Buy ASX:APT Stock _ Are you interested in investing in stocks? Then, you are at the right place. Today we are going to be unveiling all you may need to know about Afterpay shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
Afterpay Limited (abbreviated as Afterpay) is an Australian financial technology company operating in Australia, the United Kingdom, Canada, the United States, and New Zealand. Afterpay was founded in 2014 by Nick Molnar and Anthony Eisen.
In June 2017, Afterpay merged with one of its technology suppliers, Touchcorp, to form the Afterpay Touch Group.
In November 2019, the company was renamed Afterpay Limited. In August 2021, Afterpay and American payments company Square, Inc. (later renamed Block, Inc. in December 2021) announced they had entered into arrangements for Square to acquire Afterpay for US$29 billion (A$39 billion), which was later completed on January 31, 2022.
If all of this has piqued your interest in Afterpay’s growth, here’s everything you need to know about purchasing Afterpay stock.
How to Buy Afterpay Shares | Step-by-Step Guide to Buy ASX:APT Stock
1. Open a brokerage account
Opening a brokerage account is the first step in purchasing and selling assets such as stocks, mutual funds, and exchange-traded funds (ETFs). However, a brokerage is more than simply a ticket to ride Afterpay to the moon. It also includes all of the information and instruction you’ll need to be a great investor, as well as many sorts of investment accounts tailored to certain goals.
If you’re thinking about investing for retirement, consider a tax-advantaged individual retirement account (IRA).
If you want greater freedom with your investing account—say, if you want to save for your own Afterpay in the coming years—you should probably open a taxable brokerage account. These allow you to invest for any purpose or time frame, but you must pay taxes each time you sell an investment for a profit or receive dividend income.
Because not all brokerages are made equal, you should examine the fees, available investments, and services offered by at least a handful to choose which is best for you.
2. Determine the Amount to Invest
You probably can’t sign over your entire income to Afterpay. That means you’ll need to ask yourself a few questions in order to determine how much you can afford to invest in Afterpay.
- What is your budget? After you’ve paid all of your monthly bills, you’re free to save and invest whatever money is leftover. If you don’t already have one, you should put at least some of that money into an emergency fund, as well as retirement savings. However, the remainder might be used to fund other ventures, such as Afterpay.
- How much does Afterpay now cost? Stock prices are typically volatile, but Tesla’s stock price has been over $400 per share for the past year. As a result of this, you may not be able to buy a whole share of Afterpay yet. Luckily, some brokerages, like Charles Schwab, Robinhood, Fidelity and Stash, let you buy portions of stocks called fractional shares.
- What’s your investing strategy? The majority of individuals invest in one of two ways: with a huge lump sum all at once or with little amounts over time. This latter strategy, known as dollar-cost averaging, may reduce your risk and help you spend less per share on average over time.
- What about your other investments? If you’re already an investor, you should consider how Afterpay fits into your portfolio. “Any particular stock purchase should play just a modest impact in the average investor’s portfolio,” said Chip Workman, a certified financial planner (CFP) of The Asset Advisory Group. “A decent rule of thumb is that no single stock should account for more than 5% of a portfolio.”
3. Review Afterpay’s Performance and Potential
Before purchasing Afterpay shares—or any stock, for that matter—it’s a good idea to do some research about the company’s finances, performance, and future prospects. The annual reports (Form 10-K) and quarterly reports of a firm are the best places to start (Form 10-Q). In these, public firms such as Afterpay are compelled to publish thorough details on their financial health.
You can also seek the advice of specialists. Brokerage firms routinely issue commentary on key stocks and industries, while third-party assessors such as Morningstar give in-depth research.
You’ll be able to decide how much of your money to put into Afterpay if you combine financial facts with professional knowledge.
4. Decide Your Order Type and Place It
You may purchase your first Afterpay shares once you’ve determined how much you want to invest in the company. Log into your brokerage account and input Afterpay’s ticker symbol (ASX:APT) as well as the number of shares or dollar amount you wish to invest.
You can use a basic market order to buy ASX:APT at its current price, or you can use a more complicated order type, such as limit or stop, to buy ASX:APT only if its price falls below a specified level.
Because Afterpay is listed on the Nasdaq market, you may buy it from 9:30 a.m. to 4:00 p.m. ET Monday through Friday. You can continue to place orders for a few hours before or after the market opens if your brokerage offers pre-market and after-market trading. Any orders submitted outside of trading hours will be filled as soon as the exchange reopens.
Whether you invest in Afterpay or other assets, it’s a good idea to monitor their performance on a regular basis.
It’s usually best, to begin with, an annualized percentage return. This allows you to examine how well ASX:APT did over the course of a year in comparison to other companies or investments. You may also check Afterpay’s financial data to ensure that it is still heading in the right way.
In addition to comparing ASX:APT’s performance to that of other stocks, you may want to compare it to industry benchmarks such as the S&P 500 and the Nasdaq Composite Index. This will show you how Afterpay compares to the market as a whole