Summary: LendingClub is a financial services company with a rich fintech pioneering history as a popular peer-to-peer lending platform. This guide will show you how to buy LendingClub stock using a regulated online investing service like eToro.
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About LendingClub
About
Established in 2006, LendingClub was the first peer-to-peer lender to register loans as securities with the SEC and to offer loan trading, essentially making history for the fintech sector. Today, it connects borrowers looking for personal or business loans with investors wanting to fund them. LendingClub utilizes a credit-scoring model to evaluate creditworthiness and designate interest rates.
The company represented an alternative to traditional banking, winning various awards for innovation, growth rate, technological advances, and disruptiveness. However, amid regulatory scrutiny and performance issues, it turned more towards the traditional financing models in recent years.
LendingClub had its IPO on December 10, 2014, and its stock began trading on the NYSE under the LC ticker. The company is also a Russell 2000 index component.
More fintech stock
How to buy LendingClub stock: step-by-step
Investors can buy LendingClub stock on the NYSE under the ticker LC in a couple of simple steps:
Step 1: Choose a broker
Before buying LC shares, you need to gain access to the stock market via an intermediary service. The simplest way to do this is by using an online investing platform.
To securely buy LendingClub stock (LC), we recommend you consider eToro:
- 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.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Open and fund your account
After deciding on a brokerage, proceed to create and verify your account. The investing platform should then email you precise instructions within minutes.
Once you complete the verification process, you need to transfer some money into your account. You will need the funds to buy LendingClub stock. Common deposit methods often include a bank transfer, debit or credit card, and a transaction service like PayPal.
Step 3: Decide how much you want to invest
Designating the budget to buy LendingClub stock is an essential part of investing and requires some planning. Keeping within your budget prevents a severe financial disaster from happening. To secure a robust and safe investment, make sure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Remember
Step 4: Place your order and buy LendingClub Stock
The next step is to place an order and purchase LC shares. Do the following:
- Step 1: Log into your account and find LendingClub’s ticker symbol LC;
- Step 2: Type in the amount or the number of LendingClub shares you wish to purchase;
- 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
Investing in individual stocks requires monitoring and managing your portfolio regularly. You should also follow the ongoing market trends and frequently renew your knowledge of LendingClub and the overall performance of the fintech sector.
Remember
LendingClub stock price today
Pros and cons of buying LendingClub stock (LC)
Pros
- Market position: LendingClub operates within the peer-to-peer lending and fintech domains, which presents a potentially lucrative market opportunity as more consumers and businesses seek alternatives to traditional financing;
- Diversification: Including LendingClub stock in a diversified investment portfolio can provide exposure to the alternative fintech technology sector, potentially benefiting from online lending and digital finance expansion;
- Innovation: LendingClub has a tradition of innovation in fintech, disrupting traditional lending models. Continued innovation may further propel the company’s competitiveness and growth;
- Interest rate benefits: LendingClub’s business model may benefit from favorable interest rate environments, as interest rates influence the rates borrowers pay and the returns investors receive.
Cons
- Market instability: The stock market, particularly the fintech sector, has a history of volatility. Investors in LendingClub should be aware of the sudden shifts in the stock price caused either by broader market trends or company-specific factors;
- Regulatory risks: Fintech companies operate within a complex regulatory environment. Regulation changes, compliance issues, or legal challenges could impact LendingClub’s operations and performance;
- Competitive landscape: The fintech industry is fiercely competitive, with big names and emerging stars struggling for a greater market share. LendingClub must beat both traditional financial rivals as well as other fintech companies. Falling behind could result in the company’s position getting taken over;
- Credit risk: The LendingClub platform’s success depends on its ability to effectively assess and manage credit risk and the borrowers’ ability to repay their debts in time. Economic downturns or unexpected changes in borrower behavior could negatively affect loan performance.
Common mistakes to avoid when buying LendingClub Stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research LendingClub and its LC stock in detail, along with the market state of the fintech sector, before investing;
- Lack of strategy: 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 LendingClub stock
Where is LendingClub's stock listed?
LendingClub is a public company trading under the LC ticker on the New York Stock Exchange.
How do I buy LendingClub stock?
You can purchase shares in LendingClub by using a regulated online investing platform like eToro.
Should I invest in LendingClub?
Whether to invest in LendingClub hinges on your preferences and the current financial climate of the fintech sector. Make sure to research LendingClub before investing.
Does LendingClub pay dividends?
No, LendingClub does not pay dividends as of December 2023.
Is buying LendingClub stock safe?
By doing your own research, making sound investing decisions, and using a regulated brokerage like eToro, you maximize the safety and success chance of your investment.
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.
