How to Invest in Coca-Cola Shares _ 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 Coca-Cola shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
About Coc-Cola Company
The Coca-Cola Company is a multinational beverage corporation incorporated under Delaware’s General Corporation Law[a] and headquartered in Atlanta, Georgia.
The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of non-alcoholic beverage concentrates and syrups, and alcoholic beverages.
The company produces Coca-Cola, the sugary drink it is best known for, invented in 1886 by pharmacist John Stith Pemberton. At the time, the product was made with coca leaves, which added an amount of cocaine to the drink, and with kola nuts, which added caffeine, so that the coca and the kola together provided a stimulative effect.
This stimulative effect is the reason the drink was sold to the public as a healthy “tonic”, and the coca and the kola are also the sources of the name of the product and of the company. In 1889, the formula and brand were sold for $2,300 (roughly $71,000 in 2022) to Asa Griggs Candler, who incorporated the Coca-Cola Company in Atlanta in 1892.
The company has operated a franchised distribution system since 1889. The company largely produces syrup concentrate, which is then sold to various bottlers throughout the world who hold exclusive territories. The company owns its anchor bottler in North America, Coca-Cola Refreshments.
The company’s stock is listed on the NYSE and is part of DJIA and the S&P 500 and S&P 100 indexes.
If all of this has piqued your interest in Coca-Cola’s growth, here’s everything you need to know about purchasing Coca-Cola stock.
How to Invest in Coca-Cola Shares | How to Buy KO 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 Coc-Cola 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 Coca-Cola shares 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 Coca-Cola. That means you’ll need to ask yourself a few questions in order to determine how much you can afford to invest in Coca-Cola.
- 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 Coca-Cola.
- How much does Coca-Cola now cost? Stock prices are typically volatile, but Coca-Cola’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 Coca-Cola 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 Coca-Cola- 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 Coca-Cola’s Performance and Potential
Before purchasing Coca-Cola 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 Coca-Cola 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 Coca-Cola if you combine financial facts with professional knowledge.
4. Decide Your Order Type and Place It
You may purchase your first Coca-Cola shares once you’ve determined how much you want to invest in the company. Log into your brokerage account and input Coc-Cola’s ticker symbol (KO) as well as the number of shares or dollar amount you wish to invest.
You can use a basic market order to buy KO at its current price, or you can use a more complicated order type, such as limit or stop, to buy KO only if its price falls below a specified level.
Because Coca-Cola 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 KO 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 KO did over the course of a year in comparison to other companies or investments. You may also check Coca-Cola’s financial data to ensure that it is still heading in the right way.
In addition to comparing KO’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 Coca-Cola compares to the market as a whole.