Summary: Investing in GameStop (NYSE: GME), one of the most popular names in the world of gaming, is simple. All you have to do is register on a reputable online broker platform like eToro and buy GME stock.
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About GameStop
GameStop is an American retailer of video games and consumer electronics. Founded in 1984, it has since grown to become one of the largest video game retailers in the world. The company operates thousands of stores globally, offering video games, consoles, and various gaming accessories.
Over the years, GameStop has faced challenges due to the rise of digital downloads and online shopping. However, the company has been in the spotlight recently for reasons beyond its core business. GameStop’s stock became a sensation in early 2021, with a dramatic surge in its share price driven by a group of individual investors from Reddit’s WallStreetBets sub.
GameStop IPO
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GameStop had its IPO on February 13, 2002, trading under the ticker symbol GME on the New York Stock Exchange (NYSE). At that time, it was primarily known as a retailer specializing in video games.
Since its IPO, GameStop’s stock has had its ups and downs, but it wasn’t until the mentioned events of 2021 that it truly gained widespread attention. These events involved a short squeeze, where a group of retail investors targeted the stock to drive up its price, causing significant losses for some institutional investors who had bet against it.
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How to buy GameStop stock: Step-by-step
If you’re interested in buying GME stock, you can follow this step-by-step guide and find yourself a shareholder of GameStop in no time.
Step 1: Choose a brokerage account
Firstly, to buy GameStop stock, you’ll need a brokerage account. There are numerous online brokers out there, which can make the process of choosing a bit more complex for those who are new to investing. Nevertheless, you should focus on whether a brokerage is regulated, offers GME stock, and has an easy-to-use interface.
With that in mind, our go-to broker for investing in GME stock is eToro, a widely popular and fully licensed brokerage. Besides its more than 30 million registered accounts and licensed from authorities like FinCEN, eToro offers a host of useful features for all kinds of investors. Some of these include:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
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.
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Step 2: Fund your account
After selecting a brokerage platform, the next step is to finance your newly created account. This process entails connecting your bank account to your brokerage account and initiating a fund transfer. Hence, it’s essential to ensure that your brokerage account holds sufficient funds to cover the purchase of GME shares.
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Step 3: Place an order
The next step in buying GameStop stock is to place an order. To do so, you must first log into your brokerage account and search for the stock by typing either GameStop or its ticker symbol, GME. Once you find it, click on the stock symbol and access its details.
Next up, simply select Buy and enter the number of shares that you wish to purchase. Follow that up with choosing your order type (e.g., market order, limit order) and review your order before you submit it.
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Step 4: Monitor your investment
Although you’ve become a GameStop shareholder, your journey as an investor doesn’t end with the acquisition. In fact, it’s just the beginning. Now comes the crucial step of monitoring your investment to ensure it aligns with your financial goals. So, make sure you:
- Regularly check stock prices;
- Follow GameStop news;
- Review your investment strategy;
- Consider setting alters for specific stock price points;
- Diversify your portfolio.
Pros and cons of buying GameStop stock
Investing in GameStop stock comes with its own set of advantages and disadvantages:
Pros
- Potential for high returns: GameStop’s stock has shown the potential for rapid price increases, which can lead to substantial profits;
- Market visibility: This is a well-known company with a dedicated customer base, which may lead to increased brand value and potential growth.
Cons
- Volatility: GameStop’s stock is highly volatile, and its price can fluctuate wildly in a short period, leading to significant losses;
- Uncertain future: The video game retail industry is evolving, and GameStop faces competition from digital downloads and online retailers. Its long-term prospects are thus uncertain.
GME stock price today
What to avoid when buying stock
When investing in GameStop stock or any other, it’s crucial to avoid these common mistakes and pitfalls:
- Overleveraging: Don’t invest more money than you can afford to lose. The stock market carries risks, and it’s important to be financially responsible.
- FOMO: Don’t buy a stock just because it’s trending or has recently surged in price. Instead, base your decisions on research and your financial goals;
- Ignoring diversification: Diversifying your investment portfolio by including different types of assets can help spread risk. So, don’t put all your money into a single stock;
- Neglecting research: Avoid investing in GameStop or any other stock without understanding the company’s fundamentals and the factors affecting its stock price.
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 GameStop stock
Is GameStop a good investment?
GameStop can be a high-risk, high-reward investment. However, it’s essential to conduct thorough research and assess your risk tolerance before investing.
How do I know when to sell GameStop stock?
Deciding when to sell depends on your investment goals. You might sell when your target price is reached, or if your research suggests it’s time to exit.
Can I buy GameStop stock directly from the company?
Typically, you buy GameStop stock through a brokerage account like eToro, not directly from the company.
What is short squeezing, and how does it affect GameStop?
Short squeezing is when investors force the price of a stock higher by buying shares to cover their short positions, resulting in potential losses for short-sellers. GameStop experienced a famous short squeeze in early 2021.
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.
