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How to Buy Amazon Stock (AMZN)

Amazon (AMZN) is not only one of the most successful online retailers, but it’s also one of the few trillion-dollar U.S. companies that offers stocks. Founded in 1994 by CEO Jeff Bezos, the company offers an array of products and services to customers on a global scale. With its revenue and share price skyrocketing over the last few years, the company’s growth rate has attracted both rookie and experienced investors.

Do you have specific questions about investing? Speak with a financial advisor today.

How to Buy Amazon Stock With a Brokerage Account

Amazon’s stock is technically available to any investor. Many companies offer direct investment options, but those interested in purchasing Amazon shares must utilize a brokerage account. To buy Amazon stock, you’ll need to use the Amazon ticker on the Nasdaq, which is AMZN.

Your Amazon stock trade will fall into one of two categories: market order or limit order. A market order allows you to purchase the stock at its current cost. A limit order, on the other hand, allows you to set the maximum price you’re willing to pay for a share. Then, if a stock exceeds that specified amount, the order won’t proceed.

If you can’t afford to purchase a full share of AMZN, you can also invest in fractional shares through an online brokerage. These services allow investors to purchase a partial share of equity.

Brokerage firms typically provide a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs) and more. Fees and investment selections also differ within each brokerage, though many firms now offer commission-free trades on stocks. You’ll need to carefully select which firm fits best with your financial goals and needs.

Comparison of Brokerage Accounts
Brokerage Firm Commissions Minimum Best For
Robinhood
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None None – Mobile/online traders
– Self-sufficient investors
Merrill Edge
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Free stock, ETF and options trades None – Bank of America account holders
– Customer support users
Charles Schwab
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Free stock, ETF and options trades None – Sophisticated online traders
– New investors who can afford to pay for assistance

How to Buy Amazon Stock With a Financial Advisor

Buying Amazon shares on your own is not your only option. If you’re looking for expert support with your investments, hiring a financial advisor could be right for you. Simply tell your advisor that you want to invest in Amazon, and he or she can help you do it. Your financial advisor can also help figure out when it’s time to sell your shares, which can be a tricky decision.

Markets can be volatile, meaning your investment strategy can change course amid highs and lows. Whether you’re new to the stock market or an experienced investor, the help of a financial advisor can set you on a course for better investment decisions. Advisors can also help you align your investment portfolio with your overall financial plan.

Company Overview of Amazon

Headquartered in Seattle, Amazon is a global leader in the online retail and e-commerce market that provides both national and international services to its customers. Though the company initially began as a digital bookstore, it has grown to offer cloud services and other retail products through its massive network of sellers. In addition, the company has acquired other businesses, such as Whole Foods Market and Zappos.

Amazon is divided into five separate business segments: North America, International, Grocery, Subscription/Streaming and Amazon Web Services (AWS). Here’s a breakdown:

Amazon Company Overview
Amazon North America & International – Retail products
– Clothing, shoes, jewelry
– Electronics
– Food and groceries, pet supplies
– Beauty and health
– Automotive
Grocery – Whole Foods Market
Subscription and Streaming – Amazon Prime
– Amazon Music
Amazon Web Services (AWS) – Echo and Alexa
– Kindle E-readers & Books
– Advertising and publishing
– AWS Marketplace
– Storage and database services

Amazon’s Stock Price and Quality

Amazon is one of the many stocks that’s received a blue-chip status. In other words, this categorization means that the company’s stock is highly reliable. Typically, businesses that perform the strongest in the market earn that title.

However, you should also take note of the company’s share price before making an investment. As of June 2020, Amazon’s stock price runs around $2,650 per share, so it’s important to consider your long-term investment goals before purchasing Amazon shares.

How to Buy Amazon Stock (AMZN)

(Past performance does not guarantee future results. Chart from June 2020)

It may also help you to review Amazon’s Form 10K. The Form 10K is an annual report that all public companies must file with the SEC. In addition, it outlines everything from a company’s total revenue and assets to its risk factors and liabilities.

Is Amazon Stock Right for You?

Amazon’s share price runs considerably high, so you’ll want to consider your long-term investment goals before becoming a shareholder. While the company retains blue-chip status, with a history of significant growth, it’s also important to be mindful of some of its competitors. Companies like Microsoft and Walmart also offer competitively successful stocks. And, similar to Amazon, both companies specialize in either e-commerce, retail or cloud computing.

Though Amazon has recently experienced significant growth in shares, no company is insusceptible to risk. Many factors, such as competition, climate and economy, ultimately affect the performance of a stock. Therefore, potential investors should carefully analyze a company from a holistic standpoint when considering buying. However, Amazon could be a great option for those looking for long-term financial gain. The company’s global customer base and diversified product have ultimately brought it much success. If you’re interested in stable and potentially promising investments, Amazon could be right for you.

Tips to Become a Better Investor

How to Buy Amazon Stock (AMZN)

  • If you’re new to investing and want to make sure that you do it right, enlist the help of a professional. In just five minutes, SmartAsset’s free tool can match you with up to three financial advisors in your area. Get started now.
  • If you’d like to invest, but aren’t exactly sure how much to spend, SmartAsset’s investment calculator can help you assess the potential long-term effects of your investment based on your financial goals. You can get a closer look at the possible turnover of your investment, as long as you’ve got your starting investment sum, the amount and the rate at which you aim to contribute and your expected rate of return.

Photo credit: ©iStock.com/AdrianHancu, Yahoo Finance, ©iStock.com/Jirapong Manustrong

Rickie Houston CEPF® Rickie Houston writes on a variety of personal finance topics for SmartAsset. His expertise includes retirement and banking. Rickie is a Certified Educator in Personal Finance (CEPF®). He graduated from Boston University where he received a bachelor’s degree in journalism. He’s contributed to work published in the Boston Globe and has worked alongside award-winning faculty for the New England Center of Investigative Reporting at Boston University. Rickie also enjoys playing the guitar, traveling abroad and discovering new music. He is originally from Wilmington, North Carolina.
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