mazon has become a major part of everyone’s life.
You would have to travel really far to find someone who has not heard of or used Amazon.
Most major companies look attractive when you are considering investing in shares, but it can be hard to know how to get the ball rolling on doing so.
Amazon share prices doubled between 2017 and 2018 and the company has reached a $1 trillion valuation.
This all looks like a great set of factors to make it a reliable investment, but there are always considerations that need to be looked at before buying shares.
First of all, you will want to do your research.
Amazon might make your life amazing every day, but sometimes personal opinion does not translate into actual market value.
Amazon is currently riding high but there are other factors that can cause share value to plummet.
Sometimes something as simple as a change of leadership or an advertising campaign gone wrong can lead a company down the road to failure.
The nature of the rest of your portfolio might also influence your decision to buy Amazon shares as well.
A financial advisor can provide invaluable assistance when plotting out your portfolio as a whole and adding a major investment like Amazon shares to it should probably be reviewed by an expert before you pull the trigger.
Amazon has recently announced that it is moving into the healthcare arena, which offers chances for more major growth.
This type of branching out is one of the reasons that Amazon is likely to continue to be a strong and solid company that can be counted upon to improve your portfolio over the long haul.
Amazon also stated recently that it is looking into launching its own satellites so that it can provide its own internet, making yet another avenue for exponential growth.
Deciding how much to invest is the next hurdle that you will have to look into.
As of now, the company’s trading price is over $1,700.00.
This may be too steep to enter the market unless you have some money set aside for a large purchase like this.
Additionally, at that cost, you will want to be thinking long term about how much value you expect to get back from stock that has been purchased at that price.
Always remember that you should never put more than 10% of your portfolio into stocks.
To buy Amazon shares, you will need a brokerage account.
Online brokers are the best way to get started quickly and are the easiest route for getting an account.
Shop for a brokerage that has no commission or a low one.
You might also want to shop for a brokerage that will offer you fractional shares.
Now that you have done all the preparation, you are ready to buy you Amazon shares!
You have two options for this purchase.
You can use a market order, which executes immediately.
The benefit for this style of purchase lies in the speed of the transaction, which can help you to lock down the price that you want to pay right away.
The other type of purchase is a limit order which means that you set up the transaction to execute ONLY when the price is what you want it to be.
This may take longer but if price point is a major concern for you, this is the way to go.
Amazon has come a long way from its humble beginnings as an online bookstore in 1997 when shares cost $18.00.
it’s current price of over $1,700.00 a share indicates the power of growth in a stock portfolio if you invest wisely and allow stocks to mature.
Buying into Amazon now might cost you more than when the company was new, but it is a reliable choice and appears to be solid for the long term.