Are you wondering how to buy Google shares? Google is one of the best-known companies on the planet. You might already be using Google’s products such as Gmail, Google Hangouts, Google Drive, and many more.
If you’re interested in buying Google shares, it can be done entirely online. While you may already be thinking of investing in Google stock, this article does not advise you to invest in Google stock. We will share how you can buy stock in companies, with Google as an example. Investing in Google is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of Google
Google is a US-based tech multinational company that is focused on internet-related services and products. Some of its products include its leading search engine, which enjoys more than 70% market share. Google’s other revenue streams are online advertising, cloud computing technologies, and other software and hardware.
In 2015, Google was restructured, and it became a subsidiary under its parent company Alphabet. Google’s search engine enjoys a 70% market share, and the market capitalization has crossed a trillion dollars.
Google is listed on the NASDAQ stock exchange under the ticker symbols GOOGL and GOOG, and on the Frankfurt Stock Exchange under the ticker symbol GGQ1. These ticker symbols now refer to Alphabet, Google’s holding company. When people talk about buying Google shares, they refer to buying shares of Alphabet.
If you’re thinking of investing in Google, 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 Google operates in to analyze if any announcement could impact Google’s stock adversely.
Google’s stock performance in recent years
Google stock has been a top performer in the last five years. Google’s stock has been one of the world’s top performers in the past five years. In April 2016, GOOGL stock was trading at $767, and the current price as of April 2021 is $2024. Although there was a dip in Google’s stock price because of the pandemic, the stock has rebounded quickly in a few months.
Buying, selling, and trading Google shares
Here are the differences between buying, selling, and trading Google shares.
Buying Google shares: Buying Google shares involves finding a broker and placing an order to buy Google shares. You would want to buy at a lower price to profit if the stock price goes up.
Selling Google shares: If you already hold Google stock, you can sell it for a profit if you’d like to. If Google’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 Google shares.
Trading Google shares: Trading Google stock is the same as buying and selling Google 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 Google for a longer period, i.e., six months to a year or more.
Steps to follow before buying Google shares
1. Understand how the stock market works
If you want to invest in Google 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 Google 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 Google’s products and trust the Google brand, you can buy the shares of Google. Before you buy Google shares, you should take steps to research the stock and its fundamentals.
You should look at where Google gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in Google’s annual report in the annual letter to shareholders. This letter will share the important updates in the business. The SEC filings of Google, conference call transcripts of Google, quarterly earnings updates of Google, and recent news related to Google 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 Google.
3. Examine broader market conditions
You should also look at broader market conditions before you buy Google shares. If it is a bull market, the price will go up, and it would make sense to buy Google stock immediately. If it is a bear market, the price will go down, and it might be better to wait to buy Google stock at a lower price.
How to buy Google shares – a step by step guide
Buying Google shares is a simple process, even for new investors. If you’re thinking of buying Google stock, you must decide whether you want to buy Google stock for the short term or the long term. If you’re going to invest in Google shares for the short term, you should perform a technical analysis of Google stock.
If you want to hold Google stock for the longer term, you should perform a fundamental analysis of Google. You should also keep yourself updated with news and with developments of Google. Here are the steps you need to follow.
1. Select a broker
To buy Google 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 Google is listed here. Our broker reviews can help you select from the best brokers for stock trading. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade the stocks you’re interested in.
- Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
- Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
- Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments, this should be one of your criteria.
- Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
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2. Open a brokerage account
This is the account in which your Google shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as Paypal.
4. Decide how many Google shares you want to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment as you get more experienced in the stock market. You can also think about investing in fractional shares, which certain brokers offer. Buying a fractional share means you are purchasing a portion of Google stock instead of whole Google shares. If the Google share is too pricey, you can opt to buy a fractional share of Google.
5. Choose your stock order type
All you have to do now is search for the GOOGL ticker, specify the number of Google shares, choose your order type and click on buy. Once you place your order, your broker will execute the order, and the Google shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order to purchase Google stock at the prevailing market price. There are no price parameter restrictions on this order. You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a slight price fluctuation does not matter to you, you should place a market order. If you place a market order trade “after hours,” when the markets have closed for the day, your trade will get executed the next day at the prevailing market price.
The limit order instructs your broker to place an order when the Google stock reaches a specific price point. It gives you control over the price at which your trade is executed. For example, if a stock is trading at $200, but you value Google at $180, the limit order tells your broker to wait till Google stock reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position periodically
Once you have purchased Google shares, you should monitor the stock according to your investment strategy. You should follow the company’s quarterly and annual results and the news and developments in the company.
Investing always comes with certain risks and Google is no different. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker. To recap, you can buy Google shares by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order, and reviewing your position periodically.