Like most of us, you’ve probably fantasized about buying stock in a company that will skyrocket in value in a couple of years, giving you enough money to travel and relax for the rest of your life. Perhaps AMC was one of your top picks for investing in its stock, or it will be. In reality, investing is a little more complicated than waiting for birds to fly into your mouth, ready to be roasted, but you have to start somewhere.
The good news is that, unlike in the past, you can now buy shares in companies like AMC entirely online.
While we do not recommend buying AMC shares in particular, this article explains in layman’s terms how to buy shares in companies in general, using AMC as an example. It’s up to you whether your first stock purchase should be AMC or not. We strongly advise you to consult with an investment advisor because this article is not intended to be investment advice in any way.
Click here if you’d like to read our guide on buying stocks online.
AMC Quick Overview
AMC is a US Communication Services company that trades on the New York Stock Exchange under AMC’s ticker. It is well-known for offering entertainment services such as theatrical screenings and movie screenings. If you want to buy its stock, you’ll need to find a broker who gives you access to the NYSE, as that’s the primary exchange where it’s traded (stay tuned, we’ll get into this in a minute).
This does not imply that AMC is a good or bad company. However, as part of this example, you may want to be reminded of what you consider investing in.
Let’s go over the steps now! The Procedure for Purchasing AMC Shares
Okay, so you’ve decided to purchase AMC for your reasons. That’s an excellent place to start. Let’s see what awaits you before you can officially declare yourself an AMC shareholder! The procedure is similar for any company’s shares, and we’ll use AMC as an example once more.
Step 1: Locate a reputable online broker.
The exchanges to which an online broker has access are their characteristics. Because they do not have access to the NYSE, not all brokers allow you to purchase AMC shares. You will require a broker to gain access to this exchange.
The next most important aspect of a broker is that it fits you. Not all brokers allow every citizen to open an account with them; some brokers are prohibitively expensive if you only want to buy a couple of AMC shares now and then, while others are entirely free. Using our questionnaire, you can get excellent advice on selecting the right broker:
When recommending a broker, we consider various factors such as the broker’s fees, trading platform, trading markets available, and how simple it is to open an account. Safety is also paramount, but you won’t have to worry about it because we only recommend safe brokers.
Step 2: Create a brokerage account.
You must open an account after locating your online broker. This is similar to a regular bank account, and opening one is usually done entirely online. Some brokers make it as simple as opening a new Gmail account, while others require a couple of days before conducting a background check on you. Instead of storing money on it, you will keep your AMC shares, so you will need to purchase and hold AMC shares.
Step 3: Deposit into your account.
You will pay cash for those AMC shares. This money must first be sent (deposited) to your broker. This is usually very simple and quick, even easier than opening a brokerage account.
Bank transmissions and credit/debit card deposits are the maximum common deposit methods. Some brokers, such as eToro, allow you to deposit funds into your investment account using different electronic wallets such as PayPal.
Step 4: Purchase the AMC stock.
You have the account, the cash, and the target share price. The final step is to click the buy button! You log in to your online brokerage, search for AMC share, enter the number of shares you want to buy, and click buy to complete the transaction (in trading lingo: execute the buy order).
A couple of hints: when placing an order, you can select from several order types. The market order purchases the share at the current market price, whereas the limit order allows you to specify the exact price at which you want to buy the share.
Step 5: Review your AMC position regularly.
You are not done after purchasing your AMC stock. It is now critical to keep track of your investments. This essentially means adhering to your investment strategy. If you bought the AMC share intending to hold it for a more extended time, you might attend the annual meeting and gather all of the company’s news and information.
If you intend to sell it soon after the price rises, you may use different position management tools. For example, you can set the target price at which you want to sell the share for a profit, or you can use the stop-loss price to put a price at which you want to sell the stake to avoid further losses.