Apple stocks are the attraction point for every investor, and every trader wants to buy shares in Apple. Approximately two-thirds of the population of America use at least one product of the Apple company. In addition, it was the only publicly traded U.S firm to have a value of $1 trillion. So, a company with great market capitalization and value of stock in the financial markets.
Due to the stock split, Apple stocks are getting more attractive. Apple’s shares were split into four shares for a single split. As a result of the split, the stock prices of Apple fell from $499.23 (August 28, 2020) to 127.58 dollars (August 31).
After the split, Apple stock prices dropped, which attracted investors to purchase Apple stocks. If you already own Apple shares, you may not need to worry; stock splitting does not harm the value of your shares. Adding Apple or any other stocks in your portfolio is totally dependent upon the funds which you are ready to invest, financial condition, investment targets, and current holdings.
Here we talk about some factors which you need to consider before purchasing Apple and any other stocks. We are explaining the buying process of stocks through Apple shares because of the high demand for Apple stocks among traders. First, always check the company’s entire details, such as the overview and history of the firm. Detailed Guide on How to Buy Shares in India.
Summary of Apple
Apple is the U.S.-based technology company traded on the NASDAQ with the name of AAPL stock ticker. The company is famous for its unique and quality products. It is one of the famous companies with good market capitalization and holds worldwide popularity due to its products such as iPhone, Macbook, or iCloud. If you are looking to buy Apple stocks, you have to pick a broker that provides you access to the NASDAQ because it is the prime exchange where it was traded.
Based on all these factors, we can’t predict whether Apple stocks are suitable for investment or not. There are various reasons we need to consider before investing in Apple stocks. Never forget to check the past history of Apple stocks because price predictions are often based on historical data.
In addition, traders should always remember the tv commercial that says that scheme-related documents carefully be read, checked, and then any decision should be made. Traders can even have other investment advice from the market professionals for better trading.
Apple stocks History
Apple is a multinational tech company involved in producing and developing electronic products such as the Macbook, iPhone, and other electronic devices. It gained worldwide popularity due to its unique and attractive product range.
Apple came into the market in December 1980. The company released their share in the market at a minimum rate of $ 22 per share. The history of Apple is full of ups and downs along with the cut to cut competition with Microsoft. When the Apple Macintosh line started developing unique types of computers like iPhone and iPad, they led the company to the front line of the development sector.
Now, Apple has achieved mass popularity across the world. In the current situation, the Release of a new version of the iPhone or any other Apple product automatically becomes a worldwide event. The result of all these events is the massive increase in product sales. The company was able to maintain stable growth nearly in the first half of 2013.
As we all know, worldwide economic conditions are struggling with harmful results of the COVID-19 pandemic. But during this situation, the Apple share rose from $ 62 per share (March 2020) to $140 per share (January 2021). In the drop of 2021, Apple stocks price increased and again fell sharply overnight. During this period, traders got the opportunity to buy Apple stock at cheaper prices.
How to buy Apple stocks?
If you are new in the finance world and you are looking to buy Apple stocks. The first thing that you need to do is open a trading account on a regulated brokerage portal such as Investby. When you are done with the account opening process, you need to add funds to your account. Now you are all ready to place a buying order. Now follow the four steps to understand the process of buying shares through your trading account.
Traders have to select the best possible help for smooth trading, like the broker, investment account/ brokerage account, exchange-traded fund, investment strategy, American stock market, dollar value in comparison to the trading market country, direct investment, scheme related documents, etc.
Select an online broker
Picking a broker is not easy; you need to do complete research before selecting any broker. An online broker provides trading services that consist of authorization of buying and selling stocks in favor of retail traders. Must check if the broker you are picking offers assets that you want or not and how much commission it will charge from you for each trade. Try to pick a broker which consists of multiple investment options that enhance your trading area.
As we are talking about Apple stocks, your broker must have access to the NASDAQ. If you are a resident of the U.S., you can easily buy Apple stock because approximately every US-based broker consists of access to the NASDAQ. But if you live in other nations, you must confirm that your broker has access to NASDAQ or not.
Traders even consider Apple stocks as these are good investment portfolio makers that help them diversify and reduce the risks of the trade. The stock market is a big trading place that has been traded by many over years and thus is taken into account for portfolio management.
Figure out the number of shares you want
Now it is time to figure out how many Apple shares you want to purchase from the stock market. Never burden yourself while buying shares. Purchase a number of shares that you can easily afford. Keep this thing in mind while buying shares; always purchase single shares in the beginning and later add more to your investment as per your capacity.
If your investment capital is fewer, you can consider buying Apple stock infractions to get started as an investor. If you don’t know what fractional share is? A fractional share is a small piece of a single share of stocks similar to the amount of capital you invest at the current market rate.
The excellent broker always helps you invest in fractional shares by keeping a limit over your investment capital and automatically determines the number of shares you can easily afford.
In addition to share trading, traders of Apple can also opt for mutual funds that are a good choice to trade in long term investment. Mutual funds are like pooled investments where traders of different investments invest together for an investment portfolio.
Select the suitable order type
After determining the number of Apple shares of the stock you need to buy, now it’s time to pick which type of buying order you want to place for investment. The buying order which you pick will confirm the information of your order, such as how much you need to pay for an order, when your order will get placed or executed, etc.
Here are some common types of an order you can prefer.
Market Order: A market order will be executed as early as possible on the current market rate. These rates help you make sure that your order is placed, but sometimes it may ask you to pay more than the anticipated price for each share of Apple stocks that we purchase.
Stop orders: A stop order is placed only when the price of a stock increases above the specific price. For instance, you need to place an order to purchase Apple stocks along with the stop price of $125. In case the price increases above the limit of $125 per stake, your order will instantly convert into the limit order before taking place. Stop order is mainly used by the momentum plays and while you get stopped by the sell wall from investing.
Limit Orders: The order is only placed at a particular price or below that price. For instance, you place the order for purchasing 100 Apple shares of the market stocks at the restricted price of $ 120. In this situation, your order will place only in the condition if the share price reaches $120 per stake\ or falls below that.
Trailing stop orders: Trailing orders will take place while the stock price increases above its lower price via a certain amount. For instance, you are able to set a target that you have to purchase 100 shares of Apple stock while the costs increase 5% above its low costs of the day. Multiple brokers also allow you to set lower prices in terms of dollars and percentages.
Stop Limit Orders: This order type consists of combining features of both a limit and a stop order. While placing a limit-stop order in which you can set a higher limit price and a lower limit price. These limits play the role of boundaries of your order. So When you place stop-limit orders, the price will increase above your stop limit. Your order automatically converts into a later order, and the price will also rise above your limit price. Your broker automatically stops placing your order.
Carry out your trade
Recheck your order details properly before placing an order with your broker because your broker will place your order as per your instruction if your broker gets successful in playing your order. You will get a notification through push notification or by email, depending upon your account settings. You are able to see your share in your trading account. On the other hand, if your broker was unable to fulfill your order as per your direction, the broker will cancel your order at the end of the day and keep it vacant for 90 days. You can also have the option to cancel the order before its execution.
Advantages and disadvantages of buying Apple stocks
Advantages of investing in Apple stock
Quick growth: Apple stocks generally rise during earning growth and sales. While the growth is speeding up, the prices of shares are also increasing at speed. If we check the record of the previous six quarters, Apple revenue generation is growing at the rate of 3% years-over-years to 17% in the third quarter of 2018. After this, the company’s earnings will increase nearly 4.9% in the 2nd quarter of 2017 or in the 3rd quarter, and they will increase nearly 32.1% and get appreciation in huge numbers at a fewer tax rate. It doesn’t matter how you consider this data, but the truth is business is functioning very efficiently.
Moreover, the Apple company has its mutual funds that also could be taken into account by stock market traders. Mutual funds are a great trading option in the long term and provide good returns.
Higher Margin Businesses: For holding considerable growth in earnings, Apple keeps continuing to grow its revenue. And the company has been doing the same for the past many years. Apply generated $9.5 billion as revenue through its services in the 3rd quarter, and twice what the company did 3 & a half years ago.
As per the reports, the service business consists of gross margins in the middle 50 percent area, and it also has a chance to grow higher. The company’s entire margin was 38.3%. The higher revenue Apple can generate out of services, the better the Apple stock will perform. A huge portion is owned by Warren Buffet, which makes it more valuable. As long as Warren Buffet is involved in purchasing AAPL stock will perform excellently in the finance market.
Follower Advance technology: Apple has recently declared that iPhones will also support 5G speeds approximately in 2023, and the company is ready to invest $ 1 billion + in making 5G supportable microchips. So if you buy Apple stock now, you will definitely earn an excellent profit.
Disadvantages of investing in Apple stock
Too Much Debt: Investors are always interested in talking about how much cash Apple has. Apple had nearly $244 billion at the end of the third quarter. But they hardly admit that payments such as dividends and share repurchase plan of 2012 were paid in section with borrowed money.
Pull out $ 97 billion in longer-term debt, along with $46 billion in non-current liabilities and the company left with total cash of $101 billion, which is approximately equal to the $100 billion buyback plan launched in May.
Dropping product sales: Even the passionate Apple stock investor can’t refuse that iPhone is not increasing as rising as in the past. The sale of the iPhone is dropping slowly, and the current iPhone is only making 50% of the sale of new lunches. But this can’t harm the image of Apple because several other products are performing well in the market.
PS:- A beginners guide on how to buy GameStop stocks
At the end of the article, we can predict that buying shares in Apple is a good idea. Check here the step to buy shares of the Apple stocks. Here we provide you with complete details about the Apple company and its past performance. Here we also talk about the advantages and disadvantages of buying Apple stocks. For more, read the above article carefully.