Facebook is one of the most popular companies in the world and a Big Tech success story. Find out what moves the price of Facebook shares and whether you should own some.
STEP 1: Open A Brokerage Account
Buying shares in Facebook is not as easy as some other companies, You need a brokerage account to handle transactions if you’re looking to buy Facebook or any other stock. Available services, fees and investment options differ from one broker to the next, so it’s smart to shop around to find one that fits your preferences.
STEP 2: Choose An Account To Match Your Goals
Decide what kind of account you need after you settle on the right brokerage platform. Your choice of account should match your investing goals.
- Retirement accounts. When you save for retirement, Individual retirement accounts (IRAs) give you tax advantages. IRAs comes with one big control: You will owe a 10% penalty, plus any applicable taxes If you withdraw money before you are at least 59 ½.
- Taxable accounts. While taxable brokerage accounts doesn’t give any special tax benefits, you can withdraw money at any time, for any reason. This gives you flexibility when it comes to building general purpose wealth.
Step 3: Decide how much you wish to invest in Meta stocks
- Save and invest the amount of money you have left over at the end of the month after paying all of your monthly bills.
- You should have an emergency fund and retirement savings. However, you are free to invest the remainder as you see fit.
- At first you might not want to buy the whole share of AAPL stock. But in this case, you might want to buy a fraction of that share, also known as a fractional share. Some brokerages sell these traditional share sections.
- When you are ready, you can invest a huge sum of money all at once or in small amounts over a long period of time using dollar-cost averaging.
- Fixed dollar amounts of stock are bought on a regular basis regardless of the stock’s price, usually monthly. It reduces your risk and lowers your cost per share in the long run.
- Consider how AAPL stock might fit into your overall portfolio if you have other investments. Meta investors should be aware of their other holdings in large-cap technology companies.
STEP 4: Decide on a Facebook Investment Strategy
You should then decide on a Facebook investment strategy. People tend to purchase shares either as a lump sum purchase, or drip-feed their investment on a monthly basis over time with more long term goals for your Facebook stocks and shares.
This can be done by a method called dollar-cost averaging. This is where one buys fixed dollar amounts of stock at regular intervals (usually monthly) irrespective of that stock’s price. Using this skills reduces one’s risk and can help investors pay less per share on average over the long term. Finally, think about how Facebook may fit into your overall portfolio, does FB conflict with other stocks that you own in the same industry category which is Software & IT Services.
STEP 5: Place your order
Login to your trading account once you’re ready to buy shares in Meta. Type in the ticker symbol META and the number of shares you want to buy, or the amount of money you want to invest.
Lot of platforms also allow you to add a ‘stop loss’ after you’ve bought the shares, which gives you the ability to reduce your losses if the share price falls. For example, if you buy shares at £100, and set a stop loss of £90, your shares would be sold if the share price falls below £90, limiting your potential loss to 10%.
STEP 6: Evaluate Facebook’s Performance
You should always review your investment and its performance from time to time once you own shares of Facebook. Start reviewing the annualized percent return to evaluate the performance of Facebook or any other stock. This will give you a number you can compare to other assets as you gauge how well your investment in FB has performed.
Compare Facebook’s performance to benchmark indexes such as the Nasdaq 100 or the S&P 500. This shows you how Facebook has been doing in comparison to the stock market in aggregate. Since Facebook is publicly traded, it is required to file both Form 10-K annual reports and Form 10-Q quarterly reports to disclose its performance and finances.
How to invest in Meta indirectly
If you invest in Meta shares, You may make profit, however, holding shares in an individual company is higher risk than investing in a wide range of shares. A diversified portfolio should also reduce volatility.
One option is to invest indirectly in Meta by investing in a fund, investment trust or exchange-traded fund (ETF) that holds Meta shares, amongst others. These products provide a ready-made portfolio of shares in a number of different companies.
There is a wide range of options, including global and US funds and investment trusts, together with ETFs that track the S&P 500 index. However, you will pay an annual management fee for holding these products.