California-based Alphabet Inc., better known to the public by its former name, Google Inc. (GOOGL), is arguably one of the world’s biggest technology conglomerates and among the most recognizable and visible private entities in the world. The company is behind the most used internet search engines in the world, Google, processing billions of search requests each day. Additionally, the firm has venture interests in social media, video, email, analytics, robotics and other internet-based fields.
Google’s stock is one of the most successful ones in the 21st century since it traded in August 2004. After splitting its stock in April 2014, the company created class A (GOOGL) and class C (GOOGL) shares. This move cut the price in half and doubled the number of shares. The two classes of shares only differ in the voting rights they provide to their holders.
Google’s class B shares do not trade publicly and are owned by the company’s co-founders, the company chair, and a few other directors. Investors of all kinds have flocked to Google, transforming it into a $660 billion company despite its non-dividend paying status. However, a lot of investors, especially new comers are in the dark about how to trade GOOGL shares. The following guide aims to address these doubts and queries by providing instructions on how to buy GOOGL shares.
Things you should know before buying GOOGL stock online
- As suggested earlier, your first homework should be research. Try to spend as much time as you can learning about how buying stocks online works. Keep an eye on the several risks that it comes with for investors.
- Determine a budget to buy stocks carefully. You cannot just spend hundreds of dollars on buying stocks that end up performing badly. To keep your losses at a minimum, make sure to have a plan before spending your hard-earned money.
- If you are participating in stock buying on a whim then make sure to prepare yourself for some setbacks. Our advice is to only buy Google stock (GOOGL) online when the time is right.
Is it the right time to buy GOOGL?
If you check the overall performance of GOOGL in 2021, it would be evident that this stock is already up by 57%. Not too long ago, Google released its second-quarter earnings and revenue statement which outperformed market analysts’ estimates. Since Google competitor Amazon has beaten its record in search-related advertising, many believe that GOOGL's glorious days are over but they forget the fact that the search engine giant managed to grow more than 800% within less than 3 years. During the recent quarter, Google’s cloud computing revenue rose up to 53% which indicates that GOOGL is still a potential investment.
Now that you have made up your mind about purchasing GOOGL stock simply follow the steps below to invest in this particularly high-value and promising tech conglomerate.
Step 1: Choose your online broker offering stocks wisely
If you are looking to buy Google stock then you must take the same route as every online investor which is through an online stockbroker. A broker serves as an intermediary for people who wish to purchase a stock of a popular company like Google. This is also the easiest and safest way to buy stocks. All it takes is a few minutes on the broker’s official website to pick and place your order. But before you could use a broker’s services, you must choose an online broker as per your requirements.
You will find hundreds of thousands of stockbrokers available online that guarantee an easy and hassle-free procedure of purchasing stocks that investors might be interested in. But you cannot trust all of them as most online brokerage companies are straight-up scams. Find a reliable as well as a legal broker that can facilitate your order within a few moments.
Step 2: Fund your broker account to buy the stock you want
When you have chosen a broker that is appropriate for you, create an account on the broker platform. This account would be required to purchase Google so make sure to create it using the proper information and details. Once your account has been created, it is time to fund it with the initial capital required to buy the stock you have chosen.
Your account cannot be used for anything unless it has sufficient funds. Look into the deposit options supported by your broker. Most brokerage services allow online funding via credit/debit cards and even bank transfers so people can easily buy stocks of their choice but some incur a fee for bank transfers, so be careful of that while funding your account.
Step 3: Determine How Many Stocks Do You Want to Buy?
Investors are allowed to buy popular stocks when markets are active but there is a limit according to which you cannot buy more than a particular number of shares. It is to stop people who can afford to buy a huge amount of stocks to fill their portfolio with one type of company stock. Beginner investors tend to start small, which is a smart plan to see what works and what does not.
If you are purchasing Google stocks for the first time, then it would be better and less risky to buy a small number of stocks or even fractional stocks to see how it affects your investment portfolio. Google is one of the most popular 4-figure priced stocks so purchasing it comes with a lot of risks that many investors are not ready to handle.
If your broker allows converting dollar amounts to stocks, then to make the most out of it. Set an investment that you are comfortable with then buy Google stocks.
Step 4: Understand and Select The Stock Order Type
Investing online is not a game where anyone can make money by purchasing stock through an online broker. You must get familiar with the different terminologies used during online stock purchases. Some of the basic ones are as follows:
By market order, we mean the request sent to brokers to buy/sell any particular stock.
When a request is made to buy or sell a stock at a particular price or better, then it is called a limit order.
Stopping the order placed when the stock reaches a predetermined value is called a stop-loss order.
At a certain price, when the order turns into a limit order then it is called a stop-limit order.
Depending on which brokerage company you choose, the afore-mentioned order types are available to buyers and sellers. But remember to read all related facts before choosing a market order because depending on where, when, and on which type of stock you invest in, the results could be vastly different from expectations.
Things To Avoid While Buying a Stock Online
Always involve with regulated stockbrokers
The most painful experiences that beginner investors go through are all because they used an illegal and shady brokerage company to purchase any stock online. The problem lies in the fact that people refuse to notice the red flags when they are on a broker site and trust any company easily when they should be careful at first. To avoid these scams that take advantage of you, make sure that the broker you choose is appropriately regulated and has quite a reputation in the market.
Never ignore market conditions while investing
Financial market conditions are seldom predictable and most investors are aware of this simple fact. If you choose to buy Google stocks then it somehow becomes crucial to base your decision on the fundamental and technical analyses. No matter which stock you have intended to buy, it comes with a lot of risks. It is not a smart strategy to ignore market signs that tell you to hold your purchase until a better opportunity to enter the market appears.
Being hasty when it comes to buying a stock
The stock markets provide investors with a lot of opportunities that would benefit their portfolio but due to limited knowledge about these things, they let it go. Some investors get tired of waiting and purchase a stock just like that and without any planning. Hasty decisions are not rewarded in this case and therefore, people lose money instead of making a profit. So, if you do not want it to happen to you, then simply wait for an opportunity instead of making the wrong call and wasting your hard-earned money.
You should also stay on top of any news related to the stock you’re trading. For instance, Google faces numerous challenges at present such as avoiding costly regulations from domestic and international government and a need to diversify revenue sources.
Buying stocks such as Google is a great way to start your investment journey but with the above-mentioned tips, you can make the most out of it.