Are you wondering how to buy Apple shares? Apple is the world’s most valuable company, and a share in it has become a part of many people’s investment portfolios. You may already be using Apple products such as the iPhone and the Mac. However, buying shares of Apple can be confusing if you’re not familiar with how to go about it. This post will provide information on what you need to know before investing in Apple stock.
If you’re interested in buying Apple shares, it can be done entirely online. While you may already be thinking of investing in Apple stock, this article does not advise you to invest in Apple stock. We will share how you can buy stock in companies, with Apple as an example. Investing in Apple is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of Apple
It is one of the most successful companies in the world, with its products considered some of the best in their respective categories. The company specializes in consumer electronics, computer software, and online services. It is one of the Big Five American tech giants, along with Amazon, Google, Microsoft, and Facebook.
Apple has revolutionized the world with its innovative products. It has a high level of brand loyalty and is ranked as the world’s most valuable brand. It is a premier company that has many positive aspects to its business and has one of the best track records when it comes to share performance. Additionally, the company has created a strong moat with the Apple product ecosystem and its popular brand.
Apple’s revenue comes from the sales of its products such as the iPhone, iPad, Mac, AirPods, Apple TV, Apple Watch, Beats products, HomePod, and other products. In the services segment, Apple’s Cloud Services, Digital Content channels and Payment Service channels are lines of business that stand out as ones with the potential for strong sales growth.
Apple ’s stock is traded on the NASDAQ with the ticker AAPL and the company currently has a market cap of over $2.33 trillion. Apple became the first publicly trade company to be valued at over $1 trillion dollars in August 2018, and is also now worth over $2.33 trillion.
If you’re thinking of investing in Apple, you should look at the stock’s recent performance and its potential for future growth. You should also look at future product announcements and other impacts on the markets Apple operates in to analyze if any announcement could impact Apple’s stock adversely.
Apple’s stock performance in recent years
Apple stock has been a top performer in the last five years. Apple’s stock has been one of the world’s top performers in the past five years. In July 2016, AAPL stock was trading at $24.67, and the current price as of June 2021 is $133.41. Although there was a slight dip in Apple’s stock price because of the pandemic, the stock has rebounded quickly in a few months. Apple ’s recent performance is a strong indicator of its future potential. Apple’s product announcements could impact its stock price
Apple is one of the world’s most innovative companies. The company has been releasing new products and announcing updates to its current product line-up often in recent years and it has reflected in the company’s stock price. This recent performance is one of many indicators suggesting that Apple has an extremely bright future ahead and that it could continue rising. However, Apple’s stock could be adversely impacted if these announcements are not well received by investors or other stakeholders.
Buying, selling, and trading Apple shares
Here are the differences between buying, selling, and trading Apple shares.
Buying Apple shares: Buying Apple shares involves finding a broker and placing an order to buy Apple shares. You would want to buy at a lower price to profit if the stock price goes up.
Selling Apple shares: If you already hold Apple stock, you can sell it for a profit if you’d like to. If Apple’s stock price has increased significantly since you purchased it and if the market conditions look favorable for selling, that is, if you expect the price to drop, you can sell the shares and make a profit. Selling involves finding a broker and placing an order to sell Apple shares.
Trading Apple shares: Trading Apple stock is the same as buying and selling Apple shares, but it is done over shorter periods. With trading, the goal is to make smaller profits quickly. You also run the risk of making losses rapidly as well. If you’re a new investor, we recommend buying and holding your investments in Apple for a longer period, i.e., six months to a year or more.
Steps to follow before buying Apple shares
1. Understand how the stock market works
If you want to invest in Apple stock, you should understand how the stock market works. You should not panic when stocks go down or buy in a frenzy when stocks trade high.
2. Research Apple stock
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using a Apple’s products and trust the Apple brand, you can buy the shares of Apple. Before you buy Apple shares, you should take steps to research the stock and its fundamentals.
You should look at where Apple gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in Apple’s annual report in the annual letter to shareholders. This letter will share the important updates in the business. The SEC filings of Apple, conference call transcripts of Apple, quarterly earnings updates of Apple, and recent news related to Apple are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in Apple.
3. Examine broader market conditions
You should also look at broader market conditions before you buy Apple shares. If it is a bull market, the price will go up, and it would make sense to buy Apple stock immediately. If it is a bear market, the price will go down, and it might be better to wait to buy Apple stock at a lower price.
How to buy Apple shares – a step by step guide
Buying Apple shares is a simple process, even for new investors. If you’re thinking of buying Apple stock, you must decide whether you want to buy Apple stock for the short term or the long term. If you’re going to invest in Apple shares for the short term, you should perform a technical analysis of Apple stock.
If you want to hold Apple stock for the longer term, you should perform a fundamental analysis of Apple. You should also keep yourself updated with news and with developments of Apple. Here are the steps you need to follow.
1. Select a broker
To buy Apple shares online, you will need to use an online brokerage platform. You will need to choose a broker that gives you access to NASDAQ, as Apple is listed here. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria is what stocks are available for trading. Apple is listed on the NASDAQ, so you should look at brokers that offer this stock to trade.
- Commissions: You will also need to consider the commissions that are charged. The commission can be expressed in percentage or as a flat fee, and brokers may have different rates for different share volumes traded (e.g., $0 per trade when you trade more than 100 stocks).
- Fees: You may also be charged various fees, such as a flat subscription fee and/or a per-trade commission. Brokers will also charge their commission on the amount you withdraw, so make sure to factor this in.
- Payment options: You will also need to determine which payment method is available for buying stocks with your broker (e.g., credit card or bank transfer). You may also be able to use a PayPal account or receive a check by mail if it ’s supported by your broker.
- Track record: Your broker should be registered with the Securities and Exchange Commission (SEC), which will help ensure they are legitimate. In addition, your broker should have a long track record of providing high-quality service to their clients.
- Customer Service: Customer service should not go overlooked when selecting your broker. Firms with excellent customer service can make your experience as a trader more enjoyable.
- Expertise: Your broker should be able to provide you with the market expertise and technical tools you need for trading stocks. In addition, your broker might have additional services such as trade alerts or an online chat feature that can help make your experience smoother.
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2. Open a brokerage account
The brokerage account is where your purchased Apple stock will be held. As such, you want to make sure that there is a clear distinction between your brokerage account and any other accounts you might have. The ideal broker will offer low-minimums for opening an account. If your brokerage account is located at an online firm, there are often no fees to open it and trading commissions are generally low.
Once you provide your financial information and answer a few basic questions, the brokerage account is generally open within two to three business days. The time taken varies depending on the brokerage firm, but there are many brokers that offer a “same day” opening.
3. Fund your brokerage account
The next step is to fund your brokerage account. You have two options:
-You can transfer money from a bank or investment account that you already own to the brokerage firm’s designated checking account. This process is called ACH and it usually takes three days, but there are varying degrees of speed depending on which broker you choose. The most common fee for this type of transfer is $25.
-You can use a credit card to fund your account immediately, but the fee for this option varies widely depending on which broker you choose and what type of credit card (VISA or MasterCard) that you’re using. The most common fees are around $50-$75 per transaction plus an additional percentage based on the credit card type.
Most brokers accept bank and investment account transfers, and some brokers accept credit cards. For the fastest transfer speed, use ACH to send money from your bank or investment account to the brokerage firm’s designated checking account.
4. Decide how many Apple shares you want to buy
If you are new to investing, you can start with just one share or five shares. If you’re an experienced investor, start by purchasing 100-500 Apple shares.
You can also opt to buy fractional shares, which is a number of shares that is less than a whole share. Some brokers allow investing in fractional shares and other brokers do not.
5. Choose your stock order type
All you have to do now is search for the AAPL ticker, specify the number of Apple shares, choose your order type and click on buy. Once you place your order, your broker will execute the order, and the Apple shares will be listed in your account.
You can place different order types depending on your preference. For example, if you’re placing a market order, it will be executed at the current price of Apple shares when you place the trade. If you want to set a limit order with say $50 per share as the maximum purchase amount or any other type of buy-in option for fractional shares, all that you have to do is specify the order type and enter your desired purchase amount.
You can place a limit order to buy Apple shares at a particular price. If you place an order and the price of AAPL trades lower, your trade will not execute until it’s reached that set price.
For example, if Apple stock is trading at $500, but you value Apple at $380, the limit order tells your broker to wait till Apple stock reaches $380. Limit orders are a good way to set a specific purchase price for your shares.
Limit Orders are the best type of order if you have a target (such as $380) in mind, but cannot tell how long it will take to get there or when Apple might reach that level on its own. Limit orders also provide some downside protection because they only execute at the price you set them at.
6. Review your position periodically
To maintain a healthy portfolio, it’s important to periodically reviews your positions and make adjustments as needed. You’ll need to have an understanding of what the current prices are for each stock or ETF you own and how they fit into the larger market.
If things have gone well, some stocks may be significantly overvalued while others might be undervalued. You might want to consider some of the following strategies:
- Accepting a loss and taking cash off the table by selling shares that are overpriced.
- Rebalancing your portfolio with an eye toward increasing exposure to stocks or ETFs that have become undervalued, while reducing exposure to those which have been too highly valued. Follow Apple’s quarterly and annual reports to see when it’s time to re-balance.
Investing in stocks is a great way to build wealth, but it’s important to understand the risks involved. Make sure you know what your goals are as an investor and how much risk you’re willing-to-accept before making any trades or purchases. To recap you can buy Apple shares by following these steps:
- Opening a brokerage account to buy shares.
- Funding your brokerage account.
- Determining the number of Apple shares to buy.
- Determining which type of orders are best for you, then placing your order.
- Track the stock price and re-balance when it’s time to do so based on Apple’s quarterly and annual reports.