How To Buy Alphabet Stock
Alphabet Inc., or “Alphabet”, is the parent company of Google and many of its affiliates. Alphabet is the world’s largest publicly traded company by market cap and is one of the most important companies in the world today. Its share of the global technology market is valued at $ 1.1tn and its market cap is currently estimated to be over $815bn. By owning Alphabet, investors can be certain to own a piece of the cutting-edge technology of the world’s largest technology giant.
For potential investors, Alphabet is an attractive option to invest in, however, it’s not always easy to purchase its stock. This article will discuss the different methods on how to buy Alphabet stock, as well as offer advice to help you make the best decision when doing so.
Types of Alphabet Stock
Before discussing how to buy Alphabet stock, it is important to know the types of stock available. Alphabet exclusively offers what is known as Class C (GOOG) and Class A (GOOGL) stock. Class C stock has a single vote per share and does not give the shareholder voting rights. Class A stock, on the other hand, comes with 10 votes per share, giving shareholders the ability to vote on corporate decisions and provides the most significant economic value to its owners compared to the C class stock. Generally, unless you plan to actively participate in corporate management, it is suggested to buy Class C shares.
Ways To Buy Alphabet Stock
- Brokerage
The standard way to buy stocks is through a brokerage. All major online brokerages allow you to buy Alphabet stock. Generally, the process to buy Alphabet stock through a brokerage will require you to understand the difference between market and limit orders, as well as understand the different fees associated with each order type.
- Direct Stock Purchase
Another way to buy Alphabet stock is through a direct stock purchase plan (DSPP). Alphabet currently offers this program through Computershare Investment Plan services. This program lets investors to buy share directly from Alphabet at prices lower than those offered through a broker.
- ETFs
Finally, investors can purchase Alphabet stock through ETFs or Exchange Traded Funds. ETFs are baskets of stocks that track a particular index and can be traded through a brokerage or on the open market. Investors can purchase ETFs that imitate the S&P 500 for example, most of which contain Alphabet stock.
Advice for Buyers
- Research
It is important to do your due diligence and research Alphabet stock before investing. Make sure to look at the company’s financial statements, read the news, and familiarize yourself with its products.
- Be Patient
Many investors tend to rush the process and buy when they really should be selling and vice versa. Before buying Alphabet stock, take the time to wait and watch so you can know the right decision to make.
- Buy Low and Sell High
When investing it is important to buy when the stock is low and sell when it’s high. Many investors make the mistake of buying the most expensive stocks they can find and are then disappointed when the stock price drops.
- Don’t Follow the Herd
At times it can be tempting to follow the majority, however it is better to form your own opinion and make an investment decision with confidence.
- Diversify
The most important and basic rule for investing is to diversify your investments. Investing all of your money into one security is unwise and risky at best. Instead, look to spread out your investments across a few different securities from different sectors, or better yet, over different asset classes.
Investing in Alphabet stock is not only a great way to tap into the top technology giant and its subsidiaries, but it is also a smart choice for long-term growth. In order for an investor to purchase Alphabet stock, they must understand the types of stock available and the different ways to buy Alphabet stock. It is also important to do your research, remain patient, buy low and sell high, and diversify your investments. If done correctly, Alphabet can be a great addition to any portfolio and who knows, it may even bring you some pretty decent returns.
