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How to Buy Honda Stock [2024]

How to Buy Honda Stock [2023]
Bogdan Stojkov

Summary: Honda (NYSE: HMC) is a publicly traded Japanese multinational conglomerate celebrated for its innovation and reliability in manufacturing automobiles, motorcycles, and power equipment. A convenient way to buy Honda stock is through a reputable broker platform, such as eToro.

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.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

About Honda

Honda homepage. Source: honda.com

Founded in 1948, Honda is a renowned Japanese multinational conglomerate known for its automobiles, motorcycles, and power equipment. With a reputation for innovation and reliability, Honda has become a global leader in the automotive industry. The company’s diverse product range also includes power generators, water pumps, and lawnmowers.

Honda IPO

Honda’s IPO occurred many years ago, in 1953, and it has since become a well-established publicly traded company. As a result, investors can easily buy and sell Honda stock on major stock exchanges like the New York Stock Exchange (NYSE) under the ticker HMC.

How to buy Honda stock: Step-by-step

If you’re looking to buy Honda stock, feel free to follow our step-by-step guide right here:

Step 1: Choose a broker

The first step in buying Honda stock is selecting a reliable and reputable brokerage platform. Brokers serve as intermediaries, facilitating your stock transactions. That said, our go-to broker for buying HMC stock is eToro, as it offers:

  • 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.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

When choosing a broker, you should consider factors such as trading fees, account minimums, and the availability of research tools. Additionally, ensure that the broker you choose aligns with your investment goals and preferences.

Step 2: Fund your account

After selecting a broker, you’ll need to fund your brokerage account. This involves transferring money from your bank account to the brokerage account. Most brokers offer various funding options, including bank transfers and wire transfers.

Nevertheless, you should be mindful of any fees associated with funding your account, and check the processing times for different payment methods. Once your account is funded, you’ll be ready to move on to the next step.

Step 3: Place an order

With a funded brokerage account, you can now place an order to buy Honda stock. So, log in to your chosen brokerage platform and navigate to the trading section. Search for Honda’s stock symbol, which is HMC. Once you’ve found it, you can choose to place either a market order or a limit order. Review your order details carefully before confirming the purchase.

HMC stock price today

Pros and cons of buying Honda stock

Pros

Pros

  • Global presence: Honda’s global reach ensures exposure to diverse markets, reducing the risk associated with economic downturns in specific regions;
  • Innovation: Honda is known for its commitment to innovation, consistently introducing new models and technologies to stay competitive in the automotive industry;
  • Stability: As an established company with a solid financial history, Honda has demonstrated stability over the years, making it an attractive option for long-term investors.
Cons

Cons

  • Cyclical industry: The automotive industry is cyclical, meaning it can be sensitive to economic downturns. During recessions, consumer spending on big-ticket items like cars may decline;
  • Competition: Honda faces stiff competition from other automakers, both domestic and international, which can impact market share and profitability.

If you’re looking to invest in the automotive industry, you can check out our other guides, including:

Common mistakes to avoid when buying stocks

Aside from failing to research the company and its financial health which can lead to uninformed investment decisions, some of the most common investing mistakes are:

  • Ignoring risk tolerance: Assess your risk tolerance before investing. Don’t invest more than you can afford to lose, and diversify your portfolio to mitigate risk;
  • Market timing: Attempting to time the market can be challenging. Instead of waiting for the “perfect” time to invest, focus on a long-term strategy.

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 Honda stock

Is now a good time to buy Honda stock?

There’s no universally good time to buy stocks. Instead, you should consider your investment goals and the company’s performance over time.

How often should I check my Honda stock portfolio?

Regular monitoring is essential, but avoid making impulsive decisions based on short-term fluctuations. Long-term trends are often more indicative of a stock’s performance.

Can I buy Honda stock directly from the company?

Typically, investors buy stocks through brokerage platforms. However, Honda does not offer a direct stock purchase plan (DSPP), so using a broker like eToro is the standard approach.

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.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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