Overview of Microsoft
Microsoft is a technology corporation based in the United States that is listed on the NASDAQ under the symbol MSFT. One of the best-known technology companies in the world, Google is headquartered in California. Products such as Windows, Xbox, and the Office product family are associated with their brand. If you want to invest in the company’s stock, you’ll need to locate a broker that can provide you with access to the NASDAQ, which is the primary exchange on which it trades (stay tuned, we’ll get into this in a minute).
In and of itself, none of this indicates that Microsoft is a good or a terrible firm. It is possible that you will want to be reminded of what you are considering investing in as part of this example, though.
Let’s have a look at the steps!
Steps of Buying Microsoft Stock
Okay, so you’ve come to the conclusion that you’d want to purchase Microsoft for your own reasons. That’s a terrific place to start. Check out what you have to go through in order to become a Microsoft Stock holder for the first time on your official resume! The procedure is essentially the same for any company’s stock, and once again, we will use Microsoft as an example to illustrate the point.
Step 1: Find a Good Online Broker
One of the distinguishing aspects of an online broker is the number of exchanges to which they have access. Because not all brokers have access to the NASDAQ, not all brokers are able to assist you in purchasing shares of Microsoft. It goes without saying that you will require a broker in order to have access to this exchange.
A broker’s suitability for you is the second most significant consideration when choosing one. Not all brokers enable any citizen to register an account with them; some brokers are quite expensive if you only want to purchase a handful of Microsoft stock every now and then, whilst other brokers might be completely costless. Using our questionnaire, you may truly receive excellent tips on how to choose the most suitable broker:
When selecting a broker, we consider a variety of variables, such as the broker’s costs, trading platform, available markets to trade in, and how simple it is to establish an account with the broker. Safety is obviously quite essential, but since we only propose reputable brokers, you won’t have to be concerned about it at all.
Step 2: Open Your Brokerage Account
After you’ve found a suitable online broker, you’ll need to establish an account with them. This is quite similar to a standard bank account, and the process of creating one is generally completed entirely online. Some brokers process your application as quickly as starting a new Gmail account, while others require you to wait a couple of days while they do a background check on you.
Instead of putting money on it, you will be storing your Microsoft stock on it, therefore you will absolutely require this in order to purchase and store your Microsoft stock.
Step 3: Deposit Money to Your Account
You will be required to spend cash in order to purchase those Microsoft stocks. This money must first be paid to (or placed into) your broker’s account. This is normally quite simple and quick, and in some cases, it is even simpler than creating a brokerage account.
The most typical methods of depositing money are bank transfer and the use of a credit/debit card, respectively. Some brokers, such as eToro, allow you to deposit money into your investing account using a variety of different electronic wallets, such as PayPal.
Step 4: Buy the Microsoft Stock
You have the account, the cash, and the share objective. The last step is to press the purchase button! You log in to your online brokerage, search for Microsoft stock, input the quantity of shares you desire to buy, and click buy, which will commence the purchase of shares (in trading lingo: execute the buy order) (in trading lingo: execute the buy order).
A few of pointers surrounding this: while making an order, you may pick from numerous order kinds. The market order buys at the current market price, whereas the limit order allows you to select the precise price at which you wish to acquire the share.
Step 5: Review Your Microsoft Position Regularly
After you’ve acquired your Microsoft stock, your work is far from done. It is now critical to keep track of your finances. To put it another way, this implies sticking to your financial strategy. If you purchased Microsoft stock with the intention of owning it for a longer period of time, you may be able to attend the annual meeting and get all of the latest news and information about the firm.
If you want to sell it immediately after seeing a slight increase in the price, you may choose to employ a variety of position management strategies. Example: You may use the target price to determine the price at which you want to sell the stock with a profit, and the stop-loss price to determine the price at which you want to sell the stock in order to avoid further losses.
Now that you have mastered the five phases of purchasing stocks, take a time to review the top five brokers that we have hand-picked for your convenience.