Summary: You can invest in International Business Machines Corporation (IBM), one of the largest tech companies in the world, as it’s a publicly traded company. The most convenient way to buy IBM stock is through a reputable brokerage platform, such as eToro.
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About IBM
International Business Machines Corporation (IBM) is a globally recognized technology company with a long and storied history. Founded in 1911, IBM has been at the forefront of innovation in the tech industry for over a century. The company’s diverse range of products and services includes computer hardware, software, cloud computing, and artificial intelligence solutions.
IBM has a strong track record of adapting to changing market trends and evolving technologies. It’s a component of major stock market indices like the S&P 500 and the Dow Jones Industrial Average, making it a significant player in the stock market.
IBM IPO
Before we dive into the steps to buy IBM stock, let’s briefly touch on IBM’s initial public offering (IPO). An IPO is the first time a company’s stock becomes available for public purchase. In this case, IBM went public on November 11, 1915, and its stock has been traded on various stock exchanges ever since.
How to Buy IBM stock: Step-by-step process
With basic information about IBM out of the way, we can now focus on the step-by-step procedure of how to invest in its stock.
Step 1: Choose a brokerage account
First things first. To buy IBM stock, you’ll need to open a brokerage account. For those unaware, a brokerage account is like a bank account but is specifically designed for buying and selling stocks and other investments.
There are many online brokerage platforms available, each with its own set of features and fees. This can make it confusing for newbie investors; however, you should compare all platforms to find the perfect one that suits your needs and budget.
Our go-to broker is eToro, a widely used and popular brokerage with over 30 million registered accounts. It holds licenses from reputable regulatory bodies, such as FinCEN, and it also offers a wide array of useful features for all kinds of investors:
- 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
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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.
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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.
Step 2: Fund your account
Once you’ve chosen a brokerage platform, you’ll need to fund your newly-made account. This typically involves linking your bank account to your brokerage account and transferring funds. You should, therefore, make sure you have enough money in your brokerage account to cover the cost of buying IBM shares.
Step 3: Place your order
With your brokerage account funded, you can now place an order to buy IBM stock. Here are the key steps:
- Log in: Sign in to your brokerage account;
- Search for IBM: Use the platform’s search function to find IBM stock. It’s usually listed under its ticker symbol, IBM;
- Choose the number of shares: Decide how many shares of IBM you want to buy. Note that you can buy as few or as many as you can afford;
- Select the type of order: There are different types of orders, including market orders and limit orders. A market order buys the stock at the current market price, while a limit order lets you set a specific price at which you want to buy. Market orders are generally executed more quickly, but limit orders give you more control over the purchase price;
- Review and confirm: Double-check your order details and confirm the purchase.
Step 4: Monitor your investment
Once you’ve bought IBM stock, it’s important to monitor your investment regularly. By this, we mean keeping an eye on IBM’s performance, as well as any news or events that could impact the company’s stock price. The good thing is that you can use your brokerage platform to track your investment’s performance over time.
Pros and cons of investing in IBM
Before you make your decision about investing in IBM stock, you should take your time and consider the following pros and cons:
Pros
- Longevity: IBM is an established company with a history of adapting to changing markets;
- Dividend payments: IBM has a history of paying dividends to its shareholders, providing a potential source of income;
- Innovation: IBM continues to invest in emerging technologies like artificial intelligence and cloud computing, which could drive future growth.
Cons
- Competitive market: The technology industry is highly competitive, and IBM faces stiff competition from other tech giants;
- Stock price volatility: Like all stocks, IBM’s stock price can be volatile, which may result in fluctuations in the value of your investment;
- Market conditions: Economic and market conditions can impact IBM’s performance, and the company may face challenges during economic downturns.
IBM stock price today
What to avoid when investing in stocks
While investing in stocks can be a rewarding endeavor, it’s essential to be aware of potential pitfalls. Here are some common mistakes to avoid:
- Lack of research: Avoid investing in stock without thoroughly researching the company and its financial health;
- Overtrading: Resist the urge to buy and sell stocks frequently. Overtrading can lead to high fees and reduced returns;
- Emotional investing: Don’t let emotions drive your investment decisions. Avoid making impulsive choices based on fear or greed;
- Ignoring diversification: Don’t put all your eggs in one basket. Diversify your investment portfolio by spreading your money across different asset classes and industries.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs
Can I buy IBM stock directly from the company?
No, you can’t buy IBM stock directly from the company. You’ll need to use a brokerage account like eToro to purchase IBM shares on the stock market.
How much does it cost to buy IBM stock?
The cost of buying IBM stock depends on the current market price of the shares. Nevertheless, brokerages may also charge fees or commissions for executing stock trades, so be sure to check your brokerage’s fee structure.
Is IBM a good long-term investment?
The suitability of IBM as a long-term investment depends on your financial goals and risk tolerance. It’s, therefore, we recommend to thoroughly research IBM as a company and potential investment before you put your money to work.
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.
