You’ve saved up $10,000 to invest and you’re sure you want to buy Google stock, but you aren’t sure where to begin?
Never fear. Take just a few simple steps and you’ll see it’s relatively easy to understand how to set up your Google stock purchase. (Buying any other company’s stock will be a snap, for that matter.)
Step 1: Set up a brokerage account
In order to make any transaction in the stock market, you’ll need to set up an account with an online or local stockbroker.
Many brokers offer a variety of products and a suite of offerings. Choosing the right broker or any other large or small broker requires research into the fees and products available as well as any preferences on service and support.
Luckily, Benzinga compiled a list of the Best Online Brokerages to help you narrow down your choice. Don’t have time to read through the list?
Check out our quick picks for the best online stock trading brokerages below.
Most brokerages allow investors to set up an account online as well as over the phone. It’s a pretty simple process. They’ll require the following in order to set up an account:
- Basic information, including name and address
- Personal investing experience, goals, as well as social security number information.
Once the information has been gathered, the brokerage will notify when they will determine if the account has been approved or not. Click here to buy stock through a top broker.
Step 2: Fund the account
Once an account has been approved, the next step is to fund the account. If the brokerage is part of the same institution that you bank with, it will often allow you to transfer funds directly from checking or savings accounts.
Otherwise, funding will generally need to be wired or transferred from approved institutions. Brokerages almost never allow funding of accounts based on credit card, thus requiring actual funds to be transferred.
Step 3: Transact
After an account has been set up with a broker, the next thing to do is to purchase the stock. Most brokerages have similar setups to the picture displayed. The main components are:
- Symbol of the company: GOOGL
- Action: Buy or sell
- Order type: Limit, market, stop market and stop limit
- Limit price (if choosing a limit order), or stop price (if choosing a stop order)
- Duration: Day or good until canceled
In order to determine how much stock to purchase, take the dollar value that is to be invested and divide it by the current share price, rounding down to the nearest whole number.
That amount is the maximum amount of shares that can be purchased at the current stock price. The main orders most investors use are limit and market orders. Limit orders only fill at a specific price when it is reached, while market orders execute at the current ask price, which is the price currently offered for sale.
Once the buy button is selected, you’ll be asked to confirm the transaction before it is sent. Once sent, the broker displays a confirmation number or transaction number. The broker may or may not display an alert once the stock has been purchased, so check back often.
Step 4: Check the position and move forward
Now that the position has been established, most brokerages will have a screen or area where you can view your portfolio.The portfolio will generally display the average entry or transaction price that the stock was bought at, change since the close, as well as change since the purchase.
You can typically view the overall performance of the stock or their entire portfolio on one screen. The changes will be displayed in percentages as well as in total dollar value.
Step 5: Close out the position
When Google’s stock price gets near the level that you wish to sell, enter an exit transaction similar to the way that you did the entry transaction. Follow all the same steps; the only difference is:
- You select a sell order, and the amount of shares that are sold can be up to a maximum of the total shares that you own.
At this point the entire process is complete. You can evaluate your performance for the individual stock by looking at the difference between the entry and exit prices, as well as any dividends collected.
Choosing a brokerage is the hardest part of buying Google stock. Once you are familiar with the stock-buying process, acquiring Google stock isn’t any different than buying Amazon, Facebook, or any other stock on the market.