How To Buy Amazon (AMZN) Stock



Amazon  Inc. (AMZN) has grown from a humble bookseller that Jeff Bezos started out in his storage to the largest e-commerce agency in the world, complete with internet services and marketing business verticals. AMZN has over 200 million Prime members global, and it stated $110.8 billion in sales for the 0.33 quarter of 2021.

Since Amazon’s preliminary public presenting in May 1997, whilst its share value clocked in at a measly $1.50, it’s grown extra than 2,000% to over $three,000 a percentage. Over the past 3 years alone, AMZN’s price has risen nearly one hundred%. If the ones numbers have you keen to affix your wagon to Jeff Bezos’ rocket, observe those steps:


How to Buy Amazon (AMZN) Stock
1. Open a Brokerage Account
To buy Amazon stock, you’ll want an online brokerage account. If you don’t have one already, check out our list of the first-rate brokerages and first-rate investment apps to jumpstart your seek. Most brokerages these days allow for fee-loose stock buying and selling, however ensure to keep an eye fixed out for any expenses and account minimums.

You’ll also need to consider your desires for making an investment to parent out what form of account you want.


If you’re aiming to keep for retirement or your infant’s schooling, you can benefit from tax-advantaged funding debts, like person retirement debts (IRAs) for retirement and 529s for educational charges, which assist you to keep away from capital profits taxes in trade for limits on how and when you can use the funds. Withdrawals made for other uses or at different times may incur taxes or penalties.


If you’re saving for a more wellknown purpose, like wealth building or a domestic down charge, you may simply need a taxable funding account that lets in you to get entry to your money at any time and not using a penalties.

Most brokerages offer IRAs and taxable investment money owed, despite the fact that 529s may be tougher to discover at startup 2. Decide on an Investment Budget
Even Bezos doesn’t have a limiteless sum of money to pour into AMZN. Think thru those inquiries to figure out how lots to put money into Amazon.

What’s your finances? Make certain you have your bases blanketed earlier than you start investing in Amazon. That method having sufficient to pay your payments, construct an emergency fund and store for retirement. Once these are blanketed, allocate something’s left over to buying Amazon inventory and other investments.
What’s AMZN’s fee? Investing in Amazon inventory is pricey: A single share fees well over $three,000, as of January 2022. If you don’t have that a great deal prematurely, make certain you choose a brokerage that permits you to shop for fractional shares, or quantities of man or woman inventory. Not all do.
What’s your making an investment approach? People generally invest certainly one of two methods: With a lump sum purchase or in smaller, consistent amounts over time. This latter approach, referred to as greenback price averaging, may additionally assist you pay less in step with share on average through the years. It puts your money to work and growing inside the stock marketplace as quickly as possible, as opposed to forcing you to wait while you increase a particular sum.
What other investments do you have? Chances are AMZN isn’t going to be your most effective investment. So you’ll need to do not forget the way it fits in with your other holdings and your plans. “The best investor [Amazon investor] is someone who is inclined to suppose lengthy-term, in addition to the organisation’s management style,” says Tom Forte, dealing with director and senior research analyst with D.A. Davidson and Company. “It’s someone who believes it will preserve to find new enterprise opportunities to preserve its long-time period income increase and top rate valuation.”
three. Research Your Investment
Before you pull the cause and buy Amazon stock, perform a little research to make sure you’re cozy with the business enterprise’s course and performance. As a publicly traded organisation, Amazon is needed to record facts approximately its finances with the U.S. Securities and Exchange Commission (SEC). You can discover those annual (10-K) and quarterly reviews (10-Q) on Amazon’s investor family members web page or via attempting to find Amazon on SEC.Gov.

In addition, you may complement those information factors with expert analyses, like you may discover on Fidelity, Morningstar or Forbes, to decide if Apple appears to be a financially sound business enterprise you want to invest your money in.

4. Place an Order
If you’re geared up to shop for Amazon stock, log into your on line brokerage account or trading app. Then kind in Amazon’s ticker image (AMZN) and the number of shares you need to buy or the amount of money you want to make investments.


You might also should pick out what form of order you need to make. Two of the maximum not unusual kinds are market orders and restrict orders.

A marketplace order buys or sells stocks of a inventory at its modern price on the market.
A limit order handiest buys or sells stocks if the inventory reaches a particular rate which you set.
Like many generation companies, Amazon is traded at the Nasdaq change, which has ordinary trading hours of 9:30 a.M. Thru four:00 p.M. ET, Monday thru Friday. Your brokerage may additionally provide get admission to to additional pre- and after-market trading hours.

Five. Regularly Review Your Investment’s Performance
Whether you spend money on just one business enterprise or hundreds, it’s a good concept to study your investment’s overall performance on a ordinary agenda, whether that’s month-to-month, quarterly or annually. That manner, you can see how your account is doing and evaluate whether you want to make any modifications.

To choose how your Amazon funding is appearing, you may compare its performance to the ones of benchmark indexes, just like the Nasdaq one hundred or S&P 500. You may additionally song the monetary records supplied in its public filings to gauge how Amazon handles its finances through the years.

How to Sell Amazon Stock
Whether you need to use your cash to make a chief purchase or to put money into some other organisation, there'll come a time whilst you want to promote your stocks of AMZN stock. To do so, really input your brokerage or funding app buying and selling platform, kind inside the ticker image and pick out the quantity you need to sell.


If you’ve earned big profits, it could be a terrific idea to meet with a tax professional, like a certified public accountant (CPA), to strategize methods to control your ability taxes.

How to Invest in Amazon with an Index Fund
Although investing in individual shares can be appealing, making an investment in just one employer can go away you at risk of probably dramatic swings in charges. That’s why financial specialists advocate most people spend money on a various blend of index funds and change-traded funds (ETFs) that preserve masses of businesses’ shares.

Luckily, AMZN is very smooth to locate in those budget: It typically represents about 7% of holdings in Nasdaq a hundred budget and three.Five% of S&P 500 price range.