Buy Microsoft shares

 Buy Microsoft shares

Microsoft has become one of the largest technology companies in the world since it was founded by Bill Gates and Paul Allen in 1975, producing everything that may be related to computers, software, gaming systems and even cloud computing support for space exploration. This tremendous growth witnessed by the company since its inception translates into very strong revenues. In quarterly earnings released in October 2021, Microsoft's revenue was $45.3 billion, an increase of 22% over the same period last fiscal year. Its share price has increased by more than 45% since the beginning of the year. If you want to add some of this great financial data to your portfolio, here's what you need to know to buy Microsoft stock.

How to buy Microsoft stock

1- Choose a broker

To buy Microsoft stock, you will first need a brokerage account. Fees and account minimums vary based on the platform you're using, so be sure to research what works for you before you choose your brokerage application.

2- Determine your investment goals

Once you have chosen the right application for you, you have to think about the goals that motivate you, as they will determine the type of account you need:

Retirement: If you want to invest for your future years, an Individual Retirement Account (IRA) is probably your best option. You will have to choose between a traditional IRA and a Roth IRA depending on your financial situation.

College costs: If you want to save for a family member's tuition and any other educational expenses, a 529 investment plan allows you the money to cover some or all of these needs with tax-deductible returns.

Building Wealth: If you are looking to build your wealth, you may be better off switching to a regular taxable investment account. This means that you won't get tax exemption, but you also won't be limited in time, and you can withdraw your money under any circumstances.

3- Select the amount you want to invest

Unless you have a net worth like Bill Gates, you are probably not ready to buy a huge share of Microsoft stock. When deciding how much to invest to buy Microsoft stock, ask yourself the following questions:

What is your budget? You must be careful not to put all your money in the investment, but first you have to divide it into immediate expenses, emergency fund, retirement savings, and then use what is left to buy Microsoft shares and invest.

What is the current Microsoft stock purchase price? Microsoft is not cheap, as its share price exceeded $ 300 in December 2021. While some brokerages may allow you to buy fractional shares, others require you to buy the entire shares, which means that it can be somewhat expensive.

How comfortable are you with investing and taking risks? When you invest in a single stock, even in well-known companies like Microsoft, you take on more risk than if you were to invest in a diversified fund. You will have to face every ups and downs that the stock goes through, which could result in you losing large sums of money. If you are a person who gets nervous quickly, you are better off investing in index funds and exchange-traded funds.

How does Microsoft fit into your current investment strategy? Microsoft stock is unique because it has attractive attributes of both growth and value. This means that it is designed to align with various investment strategies.

4- Do the necessary research

The US Securities and Exchange Commission (SEC) requires publicly traded companies like Microsoft to provide information about their finances and performance on a quarterly and annual basis. You can find Form 10-Q (Quarterly Reports) or Form 10-K (Annual Reports) on the company's website. You can also use tools like Morningstar or Forbes to get market insights and analysis from industry experts.

5- Select the type of request and place it

Once you're ready to place your order, log into your trading or investing platform and enter your Microsoft ticker code, as well as the number of shares or dollar amount you'd like to invest. You can choose to buy Microsoft stock at its current price, which is known as a market order, or you can place a limit order if you want to buy at a specific price.

Microsoft shares are traded on NASDAQ, which is the second largest stock exchange in the world. Normal trading hours for NASDAQ are 9:30 a.m. to 4:00 p.m., Monday through Friday.

6- Evaluate the performance of Microsoft shares

No matter what you invest in, it is wise to review your investment periodically and know how to measure it. You first need to determine Microsoft's stock returns for a given period so that you can compare it to the returns of specific market benchmarks, such as the S&P 500 or the Nasdaq 100 index.

This will give you an idea of ​​how your investment's performance aligns with that of a particular industry or the stock market in general. You can also track the company's financial statements over the course of each quarter or year to determine if it is using its finances wisely.

Frequently Asked Questions

How do I sell Microsoft shares? If you want to sell your Microsoft stock, log into a trading platform, then type in the ticker symbol and the number of shares or dollar amount you want to sell. But before selling any shares, be sure to consider capital gains taxes. If stock prices have gone up since you invested your money, your earnings will likely be taxed.

What are the other ways to buy Microsoft shares? If you want to buy Microsoft stock, but you are not willing to take the risk that you are likely to face next, you can look into index funds or ETFs that you hold.

In terms of portfolio management, your portfolio should be large enough to buy individual stocks while maintaining sufficient diversification. If you don't have the money or time to manage a sufficiently diversified portfolio on your own, ETFs and index funds offer a great alternative. If you are a beginner in the field of investment, you can check out the Mutual Fund Trading article to learn how to invest in funds.

Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.

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