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\n","featuredImage":{"id":"cG9zdDoxMzcxNTY=","databaseId":137156,"altText":"A rocket soaring up","date":"2021-05-04T16:43:51","fileSize":25907,"mimeType":"image/jpeg","modified":"2021-05-04T16:44:05","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2021/04/rocket-flies-through-the-clouds-picture-id1190582403.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-11-20","readable":"November 20, 2024","readableExtended":"November 20, 2024, 8:11pm ET"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMzY=","databaseId":136,"userId":136,"avatar":{"url":"https://secure.gravatar.com/avatar/1d295f71ad5f26fc505155b8d7e5e2a0?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Jeff White is an Editor for SmartAsset. He's an expert in a variety of personal finance topics, such as investing, banking and retirement, and also holds the Certified Educator in Personal Finance (CEPF®) designation. Jeff has received his JD and MBA and has been featured in a number of publications, such as Investopedia, The Street, Forbes, Yahoo! Finance and more. He currently resides in Utah with his wife and five children, where they cheer for the Denver Broncos and make it to the water to sail whenever given the chance.","additionalMeta":{"expertise":"Financial Planning, Small Business, Retirement, Banking","__typename":"User_Additionalmeta"},"email":null,"firstName":"Jeff","fullName":"Jeff White, CEPF®","lastName":"White, CEPF®","name":"Jeff White, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":16,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"jwhite","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/investing/how-to-buy-spacex-stock","metaDesc":"Many investors would like to get in on Elon Musk's space exploration venture, but SpaceX isn't public. So what are your options for investing?","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"How to Buy SpaceX Stock","__typename":"PostTypeSEO"},"slug":"how-to-buy-spacex-stock","status":"publish","title":"How to Buy SpaceX Stock","uri":"/investing/how-to-buy-spacex-stock","tags":{"nodes":[{"name":"news-sitemap","__typename":"Tag"}],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjoxMjI=","databaseId":122,"userId":122,"avatar":"$1e","description":null,"additionalMeta":"$1f","email":null,"firstName":"Kiara","fullName":"Kiara Taylor","lastName":"Taylor","name":"Kiara Taylor","postCount":"$20","slug":"kiara-taylor","__typename":"User"},"editedBy":{"id":"dXNlcjoxMzY=","databaseId":136,"userId":136,"avatar":"$23","description":"Jeff White is an Editor for SmartAsset. He's an expert in a variety of personal finance topics, such as investing, banking and retirement, and also holds the Certified Educator in Personal Finance (CEPF®) designation. Jeff has received his JD and MBA and has been featured in a number of publications, such as Investopedia, The Street, Forbes, Yahoo! Finance and more. He currently resides in Utah with his wife and five children, where they cheer for the Denver Broncos and make it to the water to sail whenever given the chance.","additionalMeta":"$24","email":null,"firstName":"Jeff","fullName":"Jeff White, CEPF®","lastName":"White, CEPF®","name":"Jeff White, CEPF®","postCount":"$25","slug":"jeff-white-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTQ5MQ==","children":"$28","databaseId":19491,"categoryId":19491,"link":"https://smartasset.com/beginner-investing/articles","name":"Investing for Beginners","postCount":587,"slug":"beginner-investing","ancestors":"$2a","parent":"$2d","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Space Exploration Technologies Corp. — commonly known as SpaceX — has rocketed to public prominence and a valuation of $125 million, even as its actual ownership remains very much out of sight. Investor interest is keen. Only a select few entities have been able to acquire direct ownership stakes in the Elon Musk-founded company. Despite that, there are ways to acquire an indirect ownership interest, at least until there’s an initial public offering. Here are several options for investors interested in owning a slice of SpaceX.

","

A financial advisor can help you find indirect ways to invest in various private but profitable ventures.

","

Invest in Baillie Gifford Trusts

","

There are two Baille Gifford trusts that affords investors the opportunity to indirectly hold stakes in SpaceX. Founded and based out of Edinburg, Scotland, investment management firm Baillie Gifford holds shares in SpaceX and makes its Scottish Mortgage Investment Trust and its US Growth Trust available for indirect investments in its SpaceX holdings. The shares trade on the London Stock Exchange.

","

The first of these investment trusts, Scottish Mortgage Investment Trust, has a 0.8% exposure in SpaceX as part of its ticker symbol SMT. The second option from Baillie Gifford comes in the form of the Baillie Gifford US Growth Trust investment trust. The US Growth Trust investment portfolio is largely comprised of stock options for companies entrenched in technology and innovation such as Tesla and Shopify, and it includes a 1.6% exposure to SpaceX as part of its ticker symbol USA.

","

Purchase Google Stock

","$2f","

So, how does Google’s purchase of SpaceX shares affect would-be SpaceX investors? The answer is actually pretty simple. Investors who currently retain Google stock as part of their portfolio may already indirectly be investing in SpaceX and its capital growth. Bear in mind, though, that Google’s share of SpaceX’s total value is obviously less than it was nearly six years ago and the giant search engine’s owner, Alphabet, may sell that stake, too.

","

Venture Capital Funds

","

Venture capital funds also hold (or have held) stakes in SpaceX. These include Founders Fund, Gigafund and Valor Equity Partners. Investing in venture capital funds can be a challenge for retail investors.

","

Traditionally, venture capital has been the domain of investment banks and private wealth management firms, though there are individual high-net-worth investors who fund VC opportunities. Over the last few years, venture capital has become more accessible to everyday investors through crowdfunding platforms.

","

Crowdfunding platforms offer an opportunity to pool your money with other investors to back startups. There are several advantages, both for startups and investors. On the startup side, crowdfunding platforms can make it easier to access venture capital. In a typical VC arrangement, startups have to pitch firms which can be a time-consuming and frustrating process. Crowdfunding eliminates that hurdle.

","

Other Potential Investments

","

Retail investors interested in getting an indirect stake in SpaceX may want to keep an eye on funds that invest in space exploration, aerospace and the military and which, thus, could become owners of Elon Musk’s company.

","$30","

Bottom Line

","$31","

Tips on Investing

","$32","

Photo credit: ©iStock.com/Alexyz3d, ©iStock.com/westtexasfish, ©iStock.com/kevin wright

"],"experts":null,"link":"/beginner-investing/how-to-buy-spacex-stock","modifiedIso":"2024-11-20T20:11:10.000Z","published":{"datetime":"2022-7-6","readable":"July 6, 2022","readableExtended":"July 6, 2022, 1:00pm ET"},"publishedIso":"2022-07-06T13:00:15.000Z","shareInfo":{"title":"How to Buy SpaceX Stock","origin":"/investing/how-to-buy-spacex-stock"},"isNewsArticle":true},"includeReadMore":true}]]}],["$","section",null,{"className":"ArticleSummary_articleSummary__IeaXB undefined","children":[["$","figure",null,{"className":"ArticleSummary_image__nvUWg","children":["$","$L12",null,{"href":"/financial-advisor/defi","children":["$","img",null,{"src":"https://smartasset.com/wp-content/uploads/sites/2/2021/06/defi-is-a-decentralized-finance-that-is-gaining-popularity-and-hype-picture-id1286713670-1.jpg","alt":"DeFi signage"}]}]}],["$","div",null,{"className":"fonts_category__lXjI0","children":"Financial Advisor"}],["$","$L12",null,{"href":"/financial-advisor/defi","children":["$","h4",null,{"className":"fonts_title__B8NZZ","children":"What Is DeFi (Decentralized Finance)?"}]}],["$","time",null,{"dateTime":"2023-5-7","className":"fonts_date___Ofhz","children":"May 7, 2023"}],["$","$L1c",null,{"article":{"id":"cG9zdDoxMzc0MjE=","databaseId":137421,"postId":137421,"author":{"node":{"id":"dXNlcjoxMjI=","databaseId":122,"userId":122,"avatar":{"url":"https://secure.gravatar.com/avatar/74b2106308028046f1066082ebdc33b9?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":null,"additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Kiara","fullName":"Kiara Taylor","lastName":"Taylor","name":"Kiara Taylor","postCount":{"pageInfo":{"offsetPagination":{"total":3,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"ktaylor","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo3OTY5","children":{"nodes":[{"name":"Advisor Basics","slug":"advisor-basics","__typename":"Category"},{"name":"Advisor Fees & Costs","slug":"advisor-fees-and-costs","__typename":"Category"},{"name":"Ask an Advisor","slug":"ask-an-advisor","__typename":"Category"},{"name":"Certifications & Licenses","slug":"certifications-licenses","__typename":"Category"},{"name":"Financial Planning","slug":"financial-planning","__typename":"Category"},{"name":"Market Insights","slug":"market-insights","__typename":"Category"},{"name":"Other","slug":"other-financial-advisor","__typename":"Category"},{"name":"Tax & Legal","slug":"tax-and-legal","__typename":"Category"}],"__typename":"CategoryToCategoryConnection"},"databaseId":7969,"categoryId":7969,"link":"https://smartasset.com/financial-advisor/articles","name":"Financial Advisor","postCount":{"pageInfo":{"offsetPagination":{"total":812,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"financial-advisor","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$33","date":"2021-06-03T16:24:48","excerpt":"

DeFi, short for decentralized finance, is a global, peer-to-peer system of storing and transferring assets without the structure, restriction and costs of a traditional centralized banking system. Advocates assert that DeFi can do everything a bank – whether brick-and-mortar or …

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MakerDAO, which was created in 2014, is often credited with being the first DeFi platform to gain widespread use. It’s an open-source project on the Ethereum blockchain and a decentralized autonomous organization created in 2014.

","

How DeFi Works

","

DeFi works off a public decentralized blockchain network, stablecoins and DeFi apps, also known as dapps.

","

Blockchains continuously collect chunks of data and link them so past transactions are immutably and unbreakably documented. Each transaction is publicly verified by everyday users, and once it goes on the chain, it can not be changed. The decentralized nature of blockchain makes it more secure than alternatives that depend on one centralized owner or authority like banks, corporations and governments. Blockchain technology enables the tracking of singular pieces of data like cryptocurrency payments so financial transactions can be verified and traced back to their owners, giving it verifiable value that can be used even more securely than fiat currencies.

","

Stablecoins are a type of cryptocurrency that aims to combine the transparency, security and immediacy of cryptocurrencies with the stability of fiat currencies.

","

Most DeFi apps, or dapps, use the Ethereum blockchain to complete transactions. You can purchase Ether, the Ethereum currency, and other cryptocurrencies to spend, lend and save. Cryptocurrencies are what fuel the creation of the blockchain network. Using dapps like Maker, Compound and Bancor, you can pretty much do anything with crypto that you can with traditional currencies like the U.S. dollar, including borrowing and lending. Among other things, you can invest in non-fungible tokens (NFTs), which have been gaining popularity for artists, collectors, celebrities of all kinds and their fans.

","

Pros and Cons of DeFi

","$44","

You can also invest on securities markets and conduct peer-to-peer activities. For example, DX.Exchange provides a platform for trading and investing in tokenized stocks backed by NASDAQ and MPS Marketplace Services Ltd. You could buy a house using crypto, provided the seller agrees and you find an abstract company that is willing to work with DeFi. Emerging technologies like BitPay can be used to make purchases for physical goods that are typically paid for in dollars by transferring crypto into cash.

","

The economic impact of Covid-19 and how banks responded revealed another potential benefit of DeFi. In response to the pandemic’s recession, some central banks slashed interest rates to maintain consumer spending and protect the economy. However, that cut the effective net worth of savers. Under a DeFi regime, a central bank would have a much more difficult – if not impossible – task to manipulate the value of its currency. In other words, DeFi enables users to guard the value of their assets from central bank manipulation.

","

There are also some disadvantages that DeFi faces. DeFi users are not able to guard the value of their assets from market gyrations. Values fluctuate frequently and sometimes extremely. Ethereum transaction rates also fluctuate, so trading could potentially become expensive. Further, dapps are a relatively new technology and weaknesses or liabilities may yet emerge. In addition, there is also an array of potential tax implications that come with purchasing, trading and investing via DeFi.

","

The security of DeFi and cryptocurrency has also been called into question, especially after hackers stole $600 million in crypto from Poly Network, a platform that connects blockchains, in August 2021.

","

Finally, the shape of emerging policies and regulatory schemes have yet to be determined. In particular, it remains to be seen regulators will respond to stablecoins coexisting with central bank digital currencies.

","

Furthermore, the $1 trillion federal infrastructure bill approved by the Senate in August 2021 includes a provision requiring cryptocurrency “brokers” to report transactions of over $10,000 to the IRS. The rule is aimed at strengthening tax collection to help pay for the infrastructure spending, but critics from within the cryptocurrency industry say the provision is overly broad and will stifle innovation.

","

Bottom Line

","$45","

Tips on Investing

","$46","

Photo credit: ©iStock.com/Vladimir Kazakov, ©iStock.com/http://www.fotogestoeber.de, ©iStock.com/Thinkhubstudio

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Investors have traditionally used professional brokers to manage their investment portfolios, but there are also a few viable avenues you can follow to manage it solo. If you feel that it’s time that you took control of your investment portfolio yourself then we have you covered. Let’s take a quick dive into the best investment plans you can use if you want to buy stocks online without a broker or brokerage.

","

Whether or not you’re buying equities on your own, without a brokerage account or an actual broker, a professional financial advisor remains a powerful resource as you decide which securities to add to your portfolio.

","

DSPPs (Direct Stock Purchase Plans)

","

A direct stock purchase plan (DSPP) is best used if you’re interested in a business that’s gone public. Do your due diligence to confirm whether the company in which you want to invest offers a DSPP in the first place since DSPPs apply only to a select number of companies that offer stock to the public for long-term investment.

","

DSPPs also offer some notable advantages compared to the other plans that we’ll cover in just a moment. Arguably the greatest appeal of a DSPP is the passive and largely automated experience that investors will have. Simply contribute your desired amount of funds through a DSPP and have the option to contribute more at a later time that’s best for you.

","

Since DSPPs have such a hands-off approach to purchasing publicly traded stocks for the long term, investor data privacy and security are less vulnerable to theft or abuse. In other words, they provide solo investors with the peace of mind that their investment data is unlikely to be sold or shared improperly.

","

With the knowledge that DSPPs are best suited for long-term investing, it’s safe to say that these plans aren’t the best options for investors who long for the agility of a licensed stockbroker or registered representative or the short-term trading made possible by a brokerage account. DSPPs also require that investors maintain their plans separately from other investment accounts, which can cause headaches for those who like having everything in one place.

","

DRiPs (Dividend Reinvestment Plans)

","

","

Like a DSPP, a dividend reinvestment plan (DRiP) is a good choice for solo investors with an eye on a publicly traded company. And while there are similarities to DSPPs, reinvestment plans like DRiPs instead take dividends you earn from stocks you buy so that you can continue to buy more stocks and (hopefully) experience a larger ROI on a regular basis.

","

The idea behind DRiPs focuses more on portfolio investments that trigger compounded growth on your returns. As compound interest works, using DRiPs to reinvest in a company’s dividends lets investors keep growing their portfolios without having to contribute more funds regularly. And similar to the platforms that allow you to create a DSPP account, platforms for DRiP account creation prioritize protecting data from intruders and securing highly sensitive personal and financial information.

","

As is the case with DSPPs, DRiPs come with their own set of drawbacks depending on your investment goals and objectives. Only certain companies offer DRiP accounts, which means you need to do your homework on the stocks that you can purchase. Investors interested in starting a DRiP account should bear in mind that gains from DRiPs are taxable income and require that you have proper liquidity to compensate for the taxes you’ll pay on such gains.

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How to Sell DSPP and DRIP Shares

","

Both DSPPs and DRIPs allow you to purchase stock from a company or broker, and sometimes without paying a fee. DSPPs in particular often use third-party transfer agents to handle the transactions. However, the shares of a DSPP are also illiquid, meaning that it’s very hard for you to sell the shares without the aid of a broker. As a result, it’s best to have a long-term strategy before investing in a DSPP since you won’t have as much control over selling them. The transfer agent you use, for example, will most likely need to determine the trade date for the sale.

","

In the case of a DRIP, you can purchase shares of a stock using the dividends of the existing stock you already own. When the time comes to sell the shares, you can do so independently since there is no broker. However, depending on the stock you’ve purchased you may need to contact a third-party transfer agent in order to place the market order to complete the sale. Something important to keep in mind with DRIPs is they aren’t sold on the actual market, so when you complete a sale the company you purchased the stock from in the first place will purchase the stock back from you.

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Depending on your plan prospectus, there may be minimum dollar purchase requirements for both DSPPs and DRIPs, but it’s usually very low (around $10).

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Online Brokerage Accounts

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While DSPPs and DRiPs can certainly help solo investors start purchasing shares themselves, they can also be restrictive and potentially confusing. One alternative to both DSPPs and DRiPs is an online brokerage account. These are the accounts you’d normally open with a financial institution and, just like traditional brokerage accounts, are available on many online trading platforms that are suitable for both investment novices as well as veterans. It’s important that you get familiar with the top online trading platforms on the market as well as the trading platform controls that they use.

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One of the biggest draws of online brokerage accounts is the low cost. Many such accounts charge nothing to trade certain types of securities, or the charge is minimal. However, you should be aware that companies advertising zero-commission trades may be getting compensated by market makers for what’s called “order flow,” something that can affect your profit, especially if you’re an active trader. Also, as with DSPPs and DRiPs, keep in mind that you’re responsible for everything from the stocks that you purchase to choosing the best time to cash out your funds.

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The Bottom Line

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Tips on Investing

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