Have you ever been interested in purchasing Facebook stock? Investing in Meta (Facebook’s parent business), whether you’re excited about the Metaverse or merely want to invest in the largest social media platform, may be for you. Starting with whether it’s a good idea to acquire Facebook stock in the first place, let’s break down how to buy Facebook stock into six easy steps. A financial advisor can also assist you in managing your entire portfolio, including investing in particular equities.
1. Determine If You Want to Buy Facebook Stock
Facebook or Meta stock may be appropriate for your investing plan, but it’s vital to consider how it fits with your objectives. It is subject to fluctuations, just like any one stock, thus it is essential to have a varied portfolio to reduce risk. Just because a share is now cheap doesn’t mean you should buy it. If there will be future growth, you might be able to enter at a reasonable cost.
It pays to conduct some stock research before investing in Meta. Examine the returns of Facebook’s rivals, the success of the tech industry as a whole, and Facebook’s earnings releases. Think about the companies that influence Facebook’s revenue. For instance, Apple has implemented numerous privacy safeguards that have a significant effect on Facebook’s ad revenue.
The process of studying the stock may make you feel a little scared, but keep in mind that knowledge is power. You shouldn’t put your hard-earned money into a corporation whose operations you are unfamiliar with. Investing in a mutual fund or index fund can be a better choice if you’d prefer not to undertake the analysis.
Nonetheless, having a brokerage account can be helpful if you really want to get into the specifics.
2. Find a Brokerage and Open an Account
Having a brokerage account is required to purchase Facebook shares. Various brokerages have areas of specialization. Some companies concentrate on more experienced investors, while others attract new investors with user-friendly dashboards or a top-notch mobile app.
Yet, most large brokerages include a wealth of instructional resources in addition to tools for visualizing and plotting stock performance.
3. Put Money into the Brokerage Account
You must have funds in your brokerage account in order to purchase Facebook shares. To do this, link your bank account to your brokerage account and transfer your funds there. Other transfer methods, such as using your debit card or a PayPal account, are permitted by some brokers. Decide how much Facebook shares you’ll purchase once you have money in your account.
4. Decide How Much to Invest in Facebook
Meta is trading at $90.54 per share as of the time of writing in November 2022. Its share price was trading above $300 in the beginning of 2022. You might purchase several shares or you could begin by purchasing fractional shares. You must determine how Facebook fits into your spending plan and investing portfolio.
You should typically only have 5–10% of your portfolio made up of particular company stocks for a broad portfolio. For instance, $2,500 to $5,000 of a $50,000 portfolio should be allocated to individual equities. The next step is for you to choose how much of it you wish to spend on Facebook. Think about your previous investments, such as whether you already have money in funds focused on the tech sector.
5. Choose Your Order Type and Buy Stock
Choosing your order type in your brokerage account is the last step in learning how to purchase Facebook stock. Market orders and limit orders are the two categories of orders used to buy or sell stocks. Here is a quick synopsis of each:
- Market orders: To purchase or sell a stock right away, use this collection of transaction orders. The stock to trade (in this case, Meta), the number of shares, and whether you’re buying or selling are all specified. The deal will then be quickly completed at market value.
- Limit Orders: A limit order limits the price at which you can purchase or sell a stock. An example of a limit order would be to purchase 30 shares of Meta at a price of $85 or less. You can use a limit order to postpone purchasing the stock until it reaches the desired price.
6. Evaluate Facebook’s Performance
After purchasing Meta stock, you must continue to monitor the company’s progress. Check in and take note of the stock price’s historical range and potential future direction. Determine whether you believe in the company’s vision by reading the earnings statements.
For instance, would you want to participate in Meta’s move away from Facebook and into the business of selling VR devices for the Metaverse, or would you consider the risk to be too great? To maintain your investment in line with your objectives, it is essential that you regularly assess your position on the company’s operations and financials.
The Bottom Line
Volatility is a danger when investing in a single company. Facebook is the same. You must select a brokerage and open an account before you may invest. It’s crucial to review your Facebook attitude every three to six months. Check to see if the company’s profits and business choices support your objectives. Know how the tech industry is changing, how the market is doing overall, and what other investments you have that might help to reduce the risk of your Facebook investment.
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