How to Buy Apple Shares | Step-by-Step Guide to Buy Apple 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 Apple shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
Apple Inc. is an American multinational technology company that specializes in consumer electronics, software and online services.
Apple is the largest information technology company by revenue (totalling US$365.8 billion in 2021) and, as of January 2021, it is the world’s most valuable company, the fourth-largest personal computer vendor by unit sales and the second-largest mobile phone manufacturer.
It is one of the Big Five American information technology companies, alongside Alphabet, Amazon, Meta, and Microsoft.
Apple was founded as Apple Computer Company on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to develop and sell Wozniak’s Apple I personal computer. It was incorporated by Jobs and Wozniak as Apple Computer, Inc. in 1977 and the company’s next computer, the Apple II became a best seller.
Apple went public in 1980, with instant financial success. The company went on to develop new computers featuring innovative graphical user interfaces, including the original Macintosh, announced in a critically acclaimed advertisement, “1984”, directed by Ridley Scott.
By 1985, the high cost of its products and power struggles between executives caused problems. Wozniak stepped back from Apple amicably, while Jobs resigned to found NeXT, taking some Apple employees with him.
As the market for personal computers expanded and evolved throughout the 1990s, Apple lost considerable market share to the lower-priced duopoly of the Microsoft Windows operating system on Intel-powered PC clones (also known as “Wintel”).
In 1997, weeks away from bankruptcy, the company bought NeXT to resolve Apple’s unsuccessful operating system strategy and entice Jobs back to the company.
Over the next decade, Jobs guided Apple back to profitability through a number of tactics including introducing the iMac, iPod, iPhone and iPad to critical acclaim, launching memorable advertising campaigns, opening the Apple Store retail chain, and acquiring numerous companies to broaden the company’s product portfolio.
Jobs resigned in 2011 for health reasons and died two months later. He was succeeded as CEO by Tim Cook.
Apple became the first publicly traded U.S. company to be valued at over $1 trillion in August 2018, then $2 trillion in August 2020, and most recently $3 trillion in January 2022.
The company sometimes receives criticism regarding the labour practices of its contractors, its environmental practices, and its business ethics, including anti-competitive practices and materials sourcing.
Nevertheless, the company enjoys a high level of brand loyalty and is ranked as one of the world’s most valuable brands.
If all of this has piqued your interest in Apple’s growth, here’s everything you need to know about purchasing Apple stock.
How to Buy Apple Shares | Step-by-Step Guide to Buy Apple 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 Apple 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 Telsa 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 Apple. That means you’ll need to ask yourself a few questions in order to determine how much you can afford to invest in Apple.
- 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 Apple.
- How much does Apple 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 Apple 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 Apple 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 Apple’s Performance and Potential
Before purchasing Apple 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 Apple 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 Apple if you combine financial facts with professional knowledge.
4. Decide Your Order Type and Place It
You may purchase your first Apple shares once you’ve determined how much you want to invest in the company. Log into your brokerage account and input Apple’s ticker symbol (AAPL) as well as the number of shares or dollar amount you wish to invest.
You can use a basic market order to buy AAPL at its current price, or you can use a more complicated order type, such as limit or stop, to buy AAPL only if its price falls below a specified level.
Because Apple 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 Apple 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 AAPL did over the course of a year in comparison to other companies or investments. You may also check Apple’s financial data to ensure that it is still heading in the right way.
In addition to comparing AAPL’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 Apple compares to the market as a whole.