A Beginner's Guide to Buying Shares in Apple Stock

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Buying shares in Apple stock can be a great investment opportunity, but it's essential to understand the basics before diving in. Apple's stock has consistently performed well over the years, with a market capitalization of over $2 trillion.

To buy shares in Apple stock, you'll need to open a brokerage account with a reputable online broker. Apple's stock is listed on the NASDAQ stock exchange under the ticker symbol AAPL.

You can start with a small investment and gradually increase your holdings over time. Apple's stock has historically been a stable choice for long-term investors, with a dividend yield of around 0.7%.

Apple's financial performance is closely tied to its quarterly earnings reports, which are typically released in late January, April, July, and October.

Understanding Apple Stock

Apple's share price is listed on the US Tech 100 (.NDX) under the ticker AAPL. As of December 11, 2024, Apple's share price is $US247.

Apple shares can be purchased through various brokerages globally, but its primary listing is on the Nasdaq exchange, where it trades under the ISIN code US0378331005 and ticker AAPL. Apple first listed on the Nasdaq in 1980 at $22 per share.

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To buy, sell, or trade Apple shares, you need to understand the details of the business and the factors that impact its share price. Sales of the popular iPhone are a main driver of the Apple share price, but investors are concerned that these sales are dwindling.

Here are some key details about Apple's stock:

Apple has processed five stock splits, including a 4-for-1 stock split on 28th August 2020, one at 7-for-1 on 9th June 2014, and a split of 2-for-1 on 28th February 2005, 21st June 2000, and 16th June 1987.

See what others are reading: Why Share Split

A Brief History

Apple's history is a story of innovation and perseverance. Apple Computer Inc. was formed in 1976 by Steve Jobs and Steve Wozniak.

The company's stock first went public on December 12, 1980, with a share price of $22 and a market cap of $1.2 billion.

Less than a decade later, both Jobs and Wozniak left Apple, and the share price plummeted to $2. This significant drop in value highlights the importance of strong leadership and vision in a company's success.

See what others are reading: Market Price per Share of Common Stock

Credit: youtube.com, History of Apple stock and Stock Splits

Apple's fortunes changed in 1997 when Steve Jobs returned to the company. Under his guidance, Apple began to produce innovative products like the iMac Power, Mac G4 Cube, and Mac OS X operating system.

In 2011, Steve Jobs resigned due to illness and passed away a few months later. At the time, Apple's market cap was a staggering $360 billion, and shares were selling for $380.

Apple's market cap reached a historic milestone in August 2018, becoming the first publicly traded company to reach a $1 trillion market cap.

What Is Price?

Apple's share price is listed on the US Tech 100 (.NDX) under the ticker AAPL.

As of December 11, 2024, Apple's share price is $US247.

One of the main drivers of the Apple share price is sales of the popular iPhone.

Basics

Apple shares are listed on the NASDAQ exchange under the ticker AAPL. This means you can buy, sell, or trade Apple shares through various brokerages globally.

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The symbol AAPL is widely recognized in the financial world, making it easy for investors to identify Apple shares. Apple's primary listing is still the NASDAQ exchange, where it first listed in 1980 at $22 per share.

To give you a better idea of Apple's financials, here are some key details:

Apple has a history of paying dividends to its shareholders, starting in mid-2012. This can be a great way for investors to earn a steady income from their shares.

The company has also processed five stock splits, including a 4-for-1 stock split on 28th August 2020, one at 7-for-1 on 9th June 2014, and a split of 2-for-1 on 28th February 2005, 21st June 2000, and 16th June 1987.

Key People and Strategy

Apple's strategy is to focus on design and functionality differentiation, and hardware-software integration, rather than new product development. This shift in focus was announced in March 2019.

The company is also putting most of its energy into becoming a digital services provider, with the launch of an Apple streaming channel expected in the near future.

Key Personnel

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Apple's key personnel is a crucial part of the company's success. They are the ones who make strategic decisions and drive the company forward.

The executive team consists of 13 members, each with a specific role. Here is a breakdown of the key personnel:

Apple also has a board of directors that oversees the executive team to ensure the interests of all stakeholders and shareholders are being served.

What Is Strategy?

Apple's strategy is focused on design and functionality differentiation, and hardware-software integration, rather than new product development.

The company has shifted its business model, with a major emphasis on becoming a digital services provider. This shift is evident with the launch of an Apple streaming channel expected in the near future.

Apple's goal is to develop a high-quality relationship with its customers, which is why retail and online store expansion is also important to the corporation.

The company's secrecy makes it difficult to predict new products and services, but its recent focus on digital services suggests a significant change in direction.

Ebitda

Credit: youtube.com, Unveiling EBITDA: The Key to Financial Clarity

Ebitda is a crucial metric that reveals a company's operating profitability. Apple's EBITDA for the 12 months ending on 30 September 2022 was a significant US$130.54 billion.

This impressive figure shows a notable 8.57% year-on-year increase, indicating a substantial improvement in Apple's operating profitability.

Investing in Apple Stock

You can buy Apple shares with IG's share trading service within minutes via their desktop platform or mobile trading app.

There are four easy steps to follow if you want to buy Apple shares: open a share trading account, log in to your IG account, find Apple shares, and choose how to buy.

You can open an account with IG quickly and easily.

The price of Apple shares may move, and you will see the change in your account.

IG will deposit any dividends into your account as soon as they receive the relevant payment from Apple.

Investing directly in individual stocks can be an absorbing and hopefully profitable experience, but it may also leave you more vulnerable to stock market volatility.

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Financial experts recommend that most people invest in a diversified mix of asset classes and investment funds that hold hundreds, if not thousands, of company shares.

Apple is found in many funds incorporating a bias towards the US.

To get started, you'll need to open a share trading account with IG, which can be done quickly and easily.

Here are the four easy steps to follow:

  1. Open a share trading account
  2. Log in to your IG account and go to your ‘My IG dashboard’
  3. Find Apple shares by opening the platform for your share trading account, going to the 'finder' panel on the platform, typing in and selecting ‘Apple’
  4. Choose how to buy by selecting either ‘at quote’ or ‘on exchange’ on the deal ticket

Research and Planning

To buy shares in Apple stock, you'll want to do your research first. This means comparing Apple's valuation to other comparable US technology companies.

One way to do this is to look at the relative price-earnings ratios – shares trading on a high price-earnings ratio likely have high expectations of substantial future growth. You can find this information on financial websites.

There are currently nearly 40 brokers following Apple shares, and their 12-month share price forecasts can give an indication of the upside and downside potential of the Apple share price over the next year. Be mindful, share price forecasts are not a reliable indicator of future performance.

To get a more detailed understanding of Apple's financials, visit the company's online investor relations page. This is a great resource for finding information about Apple's current and past financial performance.

Trading and Fees

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Some investing platforms charge a share trading fee of £6 to £12 each time you buy or sell shares. This fee can add up, so it's essential to choose a platform that suits your needs.

Platform fees can also apply, typically as an annual fee charged for holding shares on a particular platform. These fees can range from 0.25% to 0.45% per annum of the underlying portfolio.

Financing charges and commissions can add up over time, making it vital to keep an eye on these marginal costs.

How to Trade

To trade, you can choose to go long or short on Apple shares, which means you don't own the underlying asset.

Trading is different from share trading, and you can use leverage to gain full market exposure by putting down a small deposit, known as margin.

You can trade Apple shares using a CFD trading account, which is a contract to exchange the difference in the price of Apple shares from when you open your position to when you close it.

Consider reading: When Did I Buy This Phone?

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To open a leveraged position, you'll need to put down a margin, and your profit or loss will be based on the full size of your position.

You can place an order to buy Apple shares by logging in to your investing account or trading app and typing in Apple's ticker symbol (AAPL) and the number of shares you want to buy or the amount of money you're prepared to invest.

Many brokerages also allow you to add a 'stop loss' once you have bought the shares, which allows you to limit your losses if the share price falls.

You can limit your potential loss to 10% by setting a stop loss of $9 on shares you bought at $10.

It's possible to lose some, and very occasionally all, of your money when investing, so it's essential to be aware of the risks.

To buy AAPL shares, you can choose to use a market order or a limit order to delay your purchase until it reaches your desired stock price.

Using a limit order can help you smooth out buying at consistent intervals, which is known as dollar cost averaging.

Fees When

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Fees can be a sneaky way to drain your profits, so it's essential to keep an eye on them.

Most platforms charge a share trading fee, which can range from £6 to £12 per transaction. Some platforms are more generous and charge no fee at all.

A platform fee is also common, typically charged as an annual fee for holding shares. This fee can be a flat rate or a percentage of your portfolio, ranging from 0.25% to 0.45% per annum.

Investors who trade in foreign currencies will also face a foreign exchange fee, which can vary between 0.5% to 1.5% per transaction. This fee is a significant consideration, especially for those investing in stocks listed on overseas exchanges.

Currency exchange rates can be volatile, exposing your investment to currency exchange risk. This means you could lose money in sterling even if the stock price rises in the currency of origin.

It's crucial to review the terms and conditions of your broker to understand the fees involved.

Expand your knowledge: New York Stock Exchange Shares

Investing Options

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You can buy Apple shares directly or invest in a fund that holds Apple stock. There are two main ways to buy Apple shares: through a share trading account or by investing in a fund.

To buy Apple shares directly, you can open a share trading account with a platform like IG, which allows you to purchase shares within minutes. You can then follow four easy steps: open an account, log in, find Apple shares, and choose how to buy.

Alternatively, you can invest in a fund that holds Apple stock, which can provide a more diversified and stable investment option. Many global and specialist technology funds and investment trusts hold Apple shares, as well as tracker-style Exchange Traded Funds or ETFs.

Find an Investing Platform

Finding the right investing platform can be a daunting task, but it's essential to get it right. You can buy U.S.-listed companies, like Apple, through an investing platform with access to the U.S. stock market.

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One such platform is Stake, which allows you to access both the ASX and Wall St in one place. It's been used by over 500k+ investors, so it's definitely worth considering.

There are many other platforms available, but it's essential to choose one that fits your needs. Some platforms may charge higher fees for buying US shares, so be sure to compare fees before making a decision.

To buy US shares, you'll need to fund the purchase from a US dollar account to avoid a foreign exchange fee, which is typically around 1%. This can add up over time, so it's worth considering.

Here are some popular investing platforms to consider:

Investing Options

You can invest in Apple shares directly through a share trading service, which allows you to own the shares outright and receive dividend payments. You can also invest in a diversified mix of asset classes and funds that hold a ready-made portfolio of company shares, including Apple.

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To buy Apple shares directly, you can follow four easy steps: open a share trading account, log in to your account, find Apple shares on the platform, and choose how to buy. IG's share trading service allows you to buy Apple shares within minutes via their desktop platform or mobile trading app.

Investing in a diversified mix of funds can be a great way to reduce risk and increase potential returns. This approach can be especially useful for those new to investing, as it allows you to spread your investment across multiple assets.

You can invest in a range of funds that hold Apple shares, including global and specialist technology funds, investment trusts, and tracker-style Exchange Traded Funds (ETFs). These funds can provide a convenient way to invest in Apple without having to buy individual shares.

Here are some popular investment platforms that allow you to invest in Apple shares:

Investing in smaller, steadier amounts over time can be a good way to reduce the impact of market volatility. This approach is known as "pound cost averaging", and it can help you pay less per share on average over time.

Frequently Asked Questions

How much is $10,000 in Apple 20 years ago?

$10,000 invested in Apple 20 years ago would be worth over $2.71 million today, assuming reinvested dividends. This remarkable growth is a testament to Apple's incredible investment potential.

Teresa Halvorson

Senior Writer

Teresa Halvorson is a skilled writer with a passion for financial journalism. Her expertise lies in breaking down complex topics into engaging, easy-to-understand content. With a keen eye for detail, Teresa has successfully covered a range of article categories, including currency exchange rates and foreign exchange rates.

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