Investing in education and publishing can invoke a sense of pride since you contribute to spreading knowledge in the UK and around the globe. Besides philanthropy, companies such as Pearson can also provide significant returns, making their shares a popular asset with investors. This guide will explain how to buy Pearson shares in the UK and walk you through every step of the process. You will also learn how to pick the right investing platform, instructions on how to preserve your safety when investing, and the pros and cons of investing in Pearson.
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What is Pearson?
Founded in 1844 as a construction firm, Pearson switched focus to the publishing business in the 1920s. Although drastic, the transition has paid off as Pearson today provides education services and materials, including virtual learning, high education, and quality assessments, to universities, the government, and corporations.
Pearson’s shares performed extraordinarily well in 2022, which sparked interest among many traders. The company’s plan for the future is to continue expanding and educating the future skilled workforce and to extend its offer with more digital and online education tools.
Furthermore, PSON is a constituent of the FTSE 100 index.
Where to buy Pearson shares?
Although it may look hard, especially for those who have never had experience buying stocks and shares before, investing in stocks in the UK and buying Pearson shares is done in a simple, straightforward, and quick process. You can hire a professional to do those few simple steps, but investing yourself is much more efficient. To do this, you have to use an online investing service, such as eToro.
Prior to purchasing any stocks, you need to have a proper grasp of the concept of investing. Investing does not necessarily have positive results, and you can lose your investment anytime. That said, if you stick to the instructions in this guide, you will have an increased chance of earning a profit.
Let’s go through each step of buying Pearson shares and describe it in detail.
How to buy Pearson shares: step-by-step
As the the LSE publicly lists Pearson, you can buy PSON using a third-party investing service with access to the exchange.
Step 1: Choose a broker
Before buying Pearson shares, if you don’t already have an account, you must register with an online brokerage. There is a large number of brokerage platforms online, but picking the right one depends on your personal habits and investing style. Passive, long-term investing fundamentally differs from active day trading, and these approaches require different levels of investing experience, commitment, and sophistication of trading tools and features.
To securely invest in Pearson shares, consider these brokers:
1. eToro
Finding the most suitable brokerage can be a long and tiring task. If you want a top-tier, well-rounded candidate without having to spend that time and effort looking, consider buying Pearson shares through eToro, a platform that provides:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
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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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eToro USA is registered with FINRA for securities trading.
2. Interactive Brokers (IBKR)
Another investment service of choice, Interactive Brokers allows buying Pearson shares with the following features:
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
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IBKR pays up to 4.58% interest on cash balances of $10k or more
When you consider your platform of choice, pay attention to these factors:
- Fees: Certain platforms like eToro offer do not charge commissions for stock and ETF trading. However, while it is preferable to keep the costs as low as possible, this should not take priority over other factors;
- Security: Investing safely and securely should be one of your top priorities. Find out whether the FCA and PRA endorse your investing service provider and check for policies such as two-factor authentication (2FA) and SSL technology;
- Trading tools: Your investing preferences and financial objectives define your required tools and features. As advanced features cost more and are generally more complex, sticking with straightforward solutions with competitive fees might be best, especially if you are new to stock trading;
- Access to market data: Stick to a platform that offers you workable and fresh market research and data tools to boost your chances of making a profit;
- Fractional stock trading: Fractional shares enable investors to buy less or more than a whole number of shares. It is an efficient way of diversifying portfolios and setting up a dollar-cost averaging strategy.
Also, traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors.
Step 2: Fund your account
Now that you have registered an account with a brokerage, you must connect it to a deposit and transfer the funds. Depending on the platform, several different payment methods will be available, including a debit, credit, or prepaid card, linking a bank account directly, or using a money-transfer service.
Step 3: Research the company
Doing thorough research can be crucial to making the right call about investing in a company. Before you purchase any Pearson shares, ensure that you have the latest information about the current price of the stock, its previous performance, general appreciation of the company, and various media reports about the company’s plans and actions.
An appropriate place to start is the London Stock Exchange’s website, followed by Pearson’s official page, which publishes annual and quarterly reports and other essential articles.
Remember that every investment you make comes with a degree of risk. No one can guarantee that you will not end up with a net loss. This is why researching the stock is important: the more you know, the better the odds of a reliable outcome.
Step 4: Decide how much you want to invest
Once you do your research and maintain your investment position, you need to determine how much you want to buy.
The decision on the amount will depend on the current price of Pearson shares and your available budget. If you are buying shares from several companies, feel free to use our stock average calculator and come up with an average stock price for your total investment.
Remember
Step 5: Place your order and buy Pearson shares
After you have made your preparations, it is time to perform the transaction and buy the stock. To start, you need to place an order. Log into your platform of choice (eToro in our case), enter the PSON ticker, and specify the amount.
There are a few types of orders you can place:
- Market order: A classic and the simplest buying instruction you can make, this type of order buys the stock at the current price immediately. If there are shares available and the exchange is open, that is, otherwise it will execute as soon as these conditions are met;
- Limit order: A limit order goes through if the stock price makes it into the specified price bracket. For example, you want to buy Pearson shares at £8 or lower. The order goes through when the price conditions are fulfilled (in this case, £8 or lower);
- Options contract: Options speculation offers leverage at a portion of the cost of the investment asset. A call option allows investors to profit if the stock price rises and a put option enables them to benefit if the stock price falls. Derivative products can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts.
Step 6: Monitor your investment
Investing in individual stocks represents a form of active trading and takes quite a bit of effort and time on the part of investors. Unlike passive investment options such as bonds and ETFs, individual stock investments require traders to devote their attention to their portfolios.
The stock market climate changes frequently, and the right decision to buy or sell depends on a plethora of factors, including business performance, price trends, global economic climate, industry-specific events, and various media press releases.
Keep an eye on these conditions and your stock portfolio to discover the right moment to buy or sell.
Pearson shares price UK
Should I buy Pearson shares?
There are no straightforward answers here. Whether it is good to buy Pearson shares depends on your risk tolerance and the depth of research you performed. Investing always poses some hazards to your principal. However, if you understand your odds and maintain a steady trajectory, you have better odds of finding yourself with a greater sum than you started with.
We have already discussed doing the necessary research on Pearson via fundamental analysis, but it is wise to bear in mind some technical factors, too. Technical analysis sifts through various indicators, chart patterns, and trends (such as moving averages and oscillators) to produce time-sensitive instructions on buying or selling.
This gauge displays a real-time technical analysis overview for your specified timeframe.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing
Investors are bound to make a wrong call from time to time. Mistakes will set you back, but most do not mean the end of your investment. You should still strive to make as few mistakes as possible. The best way to do this is by learning from mistakes other investors have commonly made. For example, some of these failures can be boiled down to:
- Lack of research: Most mistakes happen because of improper research. You should never invest without priorly obtaining the relevant data and information;
- Lack of strategy: Define your financial objective before you buy any stocks to be able to devise an investing plan;
- Short-term thinking: Decisions made under emotional duress can cost you dearly in this market. Preserving your nerves and sticking to your plans is crucial in a long-term perspective;
- Staking everything on one asset: You are not obliged to diversify your investment, and nothing stops you from putting everything into Pearson shares. This practice, however, is hazardous, with catastrophic consequences in cases of loss;
- Inexperienced use of leverage: Leverage is putting borrowed money into the equation. It can get you high returns quickly but also has an enormous price if you lose your bet. Avoid using leverage if you’re not fully aware of the consequences;
- Falling prey to scams: Avoid shady deals and clandestine platforms. Always check whether the services you’re using and the commodities you’re dealing with are legitimate.
How to sell Pearson shares?
Whether it is time to sell according to your plan or the market circumstances made you consider the option, you can do this quickly and easily, as simple as buying them was.
Log into your investing platform account, go to your stocks section, find Pearson shares, type in the number of shares or funds you want to dispatch, and click sell. You can also place a limit order to sell the shares only if the price reaches your mark.
Pros and cons of buying Pearson shares
While you can never be sure of the outcome, weighing your decision on certain factors can help you get a clearer picture. Here are the pros and cons of buying Person stock:
Pros
- Growing demand for an educated workforce: The importance of a skilled workforce has never been greater; thus, the need for publishing and educational services is only expected to rise, which is a positive indicator for Pearson and the price of its shares;
- (Post)pandemic virtual learning explosion: During COVID-19, the established institutions for education massively adopted digital and virtual technologies. As the world returned to normality, innovative approaches were here to stay, and companies like Pearson sought to capitalize on that by leading the trend;
- High liquidity: Stocks and shares (Pearson included) can be easily bought and sold for cash.
Cons
- The need for innovation: Publishing and education are domains in dire need of innovation. While Pearson acknowledges this need, there is a chance that it is too big to change quickly enough to embrace the trend in its entirety;
- Price volatility: Stocks and shares have an inherent volatility that causes their price to vary depending on the market circumstances; Pearson shares are no exception.
Conclusion
Buying Pearson shares is a simple process, with the investment having the potential to bring hefty returns if you stay within the instructions and guidelines we shared with you.
Stay sharp, keep invested in your portfolio, and do not go over your comfortable limit budget. After all, you may discover that investing in education can indeed earn a profit.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about buying Pearson shares
What is Pearson?
Pearson is a world-leading publishing and education company. Designed to bring knowledge to the future skilled labor force, it employs over 20,000 people to provide the necessary qualifications and services.
How to invest in Pearson?
The best way to invest in Pearson is to buy its shares using a third-party platform like eToro.
How to buy Pearson shares?
Pearson is a company listed on an exchange, so you can buy its shares without any limitations. The best way to purchase Pearson shares is to use eToro as an intermediary investment service.
Should I buy Pearson shares?
The answer depends on many factors, including risk tolerance, portfolio size, investing experience, and financial goals. Investing in individual shares carries more risk than passive investment, so make sure to diversify your portfolio.
Where to buy Pearson shares?
You can buy Pearson shares at several online brokerages. Our recommendation is to go with 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. 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.
