Summary: Churchill Downs is a cross-state American company with a significant presence in the racetracks, casinos, and online wagering industries. This guide will explain how to buy Churchill Downs stock and walk you through each step of the process using a regulated online investing service like eToro.
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About Churchill Downs
Founded in 1928 in Louisville, Kentucky, Churchill Downs has managed to evolve from a horse racing venue to a gambling giant with multiple properties like casinos and online wagering platforms in its possession.
Churchill Downs owns Churchill Downs Racetrack, home to the Kentucky Derby, and other racetracks like Arlington International Racecourse and Fair Grounds Race Course. They strive to improve the horse racing experience using technological innovation and enhance the racing experience for their clients.
The company is the most profitable track owner in the horse racing industry. Besides racing, it has made a name in the gaming and sports betting markets.
As the company continues to expand, an increasing number of investors are likely to take interest in its stock.
How to buy Churchill Downs stock: step-by-step
Since April 8, 1993, the general public has been able to purchase shares in Churchill Downs Incorporated freely.
You can also buy Churchill Downs stock by following the simple five-step process explained below:
Step 1: Choose a broker
Prior to any stock purchases, you need to secure access to the stock market. The best way to enter the market and buy CHDN is via a stock brokerage.
To securely buy Churchill Downs stock (CHDN), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Depending on your habits and preferences, different brokerages will have stronger and weaker sides. However, researching these aspects will help you come up with the right platform choice regardless:
- Range of offerings: Your brokerage should have CHDN available, but also check the availability of other assets like different commodities, various stocks, forex, and derivative assets like options, CFDs, and futures. They will become helpful when you decide to diversify your portfolio;
- Cost: No-minimum accounts and 0% commission fees for stocks and ETFs are the standards of the industry, so do not consider anything less favorable;
- Regulation and security: Your investing platform must adhere to the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations. Acknowledge the presence of two-factor authentication (2FA) policy and similar security measures;
- Fractional stock trading: Platforms that enable fractional stock trading allow you to buy stocks by the dollar amount, which suits those with limited capital or traders seeking to pursue the dollar-cost averaging approach.
Step 2: Open and fund your account
Once you opt for an investing service, continue by registering and verifying your account. You should receive an email with instructions, after which you need to transfer some funds to your account to purchase CHDN stock.
Payment options usually include a bank transfer, debit or credit card, and a third-party transaction service such as PayPal (PYPL). There is no practical difference between them for this, so pick the one you find best.
Step 3: Decide how much you want to invest
Coming up with an appropriate amount of cash to invest is integral to the investing process. Investors should not take this step lightly: going well over your budget limit will have dire consequences for your life in the worst-case scenario.
To prevent this, prepare so you have the correct answers for these two questions:
- Will the quality of my life deteriorate if the investment process does not deliver?
- Do I have an emergency fund that covers at least three months of daily expenses and no outstanding high-interest debt?
Also, the right amount of money depends on your investing approach, risk tolerance, and envisioned investment timeline.
Remember
Step 4: Place your order and buy Churchill Downs stock
Investors have to place a trade order to buy CHDN shares, which they can do in the following steps:
- Step 1: Log into your brokerage account and navigate towards the company’s ticker stock symbol CHDN;
- Step 2: Type in the amount of stock you want to buy;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
You should frequently research, manage, and constantly monitor your stock investment to ensure your portfolio stays on the path to success.
Furthermore, you must pay attention to the state of sports betting in the company’s business domain. Moreover, keep a look at the legal status of sports gambling across the US states, the new technologies that enter the market, and the general competence of Churchill Downs.
Churchill Downs stock price today
Pros and cons of buying Churchill Downs stock (CHDN)
Pros
- Growth potential: Churchill Downs will benefit from the rapidly expanding online betting and gambling industry, especially with the newest US sports wagering legalizations;
- Established brand: The company is synonymous with worldwide famous horse racing events like the Kentucky Derby. The brand recognition and its century-and-a-half history are a solid boon for CHDN;
- Diverse assets: Besides horse racing, Churchill Downs operates casinos, online betting platforms, and entertainment venues. Various streams of revenue could potentially provide stability and reliable income;
- Recurring revenue: The company’s Kentucky Derby and other horse racing events gather large crowds and generate recurring revenue from ticket sales, sponsorships, and media rights.
Cons
- Fierce competition: Churchill Downs faces rivals both in and out of the horse racing domain. The sports betting and online gaming industry is markedly competitive;
- Legislatory challenges: Changing regulations decisively affect the sports betting industry. Churchill Downs’s expansion hinges on the secured legal status of sports betting in the U.S., with any changes to the trend likely to negatively affect CHDN’s performance;
- Dependency on events: A hefty amount of the company’s revenue comes from its major events like the Kentucky Derby. If these events were to underperform or fail (due to factors like weather, logistical issues, or other emergencies), its earnings would drop significantly.
Common mistakes to avoid when buying Churchill Downs stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research the stock in detail, along with the global market and sports betting industry, before investing anything;
- Lack of strategy: Clearly set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Churchill Downs stock
How to buy CHDN stock?
You can invest in Churchill Downs by buying CHDN stock with a third-party brokerage such as eToro.
How do you choose the right brokerage?
Choosing the right brokerage depends on your own preferences, but you should generally opt for regulated platforms with a firm reputation and a wide assortment of investment assets. An example of such a platform is eToro.
Should I invest in CHDN stock?
The answer depends on factors such as your investing habits, personal traits, and sports betting industry status. Besides the stock, consider the performance of online sports betting and horse racing, which both affect CHDN’s performance.
How do I sell my CHDN stock?
Go to your online brokerage account, find CHDN, type in how much stock you want to offload, and press the ‘sell’ button.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
