Summary: The second-largest publishing company in the world, Pearson is a renowned leader in the education technology sector. This guide will show you how to buy Pearson stock using a regulated online brokerage like eToro.
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About Pearson
About
Designed for individuals and institutions alike, the tools provided by Pearson assist in all phases of education and skill development. The company has focused its offer on innovative personalized learning and digital technologies used in the process.
Pearson is the world’s second-largest education company by market capitalization, which stands at $8.60 billion as of December 2023. The company employs a global workforce of over 20,000. Additionally, its products and services are available in more than 200 countries. In addition to its primary London Stock Exchange listing, Pearson also trades on the New York Stock Exchange. PSON is a constituent of the FTSE 100 index.
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How to buy Pearson stock: step-by-step
You can buy Pearson stock on the London Stock Exchange under the ticker PSON or the New York Stock Exchange under the ticker PSO. Investing in Pearson is straightforward with a regulated online broker. Simply go through the following five steps:
Step 1: Choose a broker
Before you can buy PSON shares, you need to enter the stock market through an intermediary. The simplest way to do this is an online investing platform.
To securely buy Pearson stock (PSON), 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
-
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.
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eToro USA is registered with FINRA for securities trading.
Step 2: Open and fund your account
Once you opt for the brokerage, continue to create and verify your profile. The investing platform should send the precise instructions via email within minutes.
When the verification goes through, you should deposit some funds into your account. You will need that money to buy Pearson stock. Some commonly available methods include a bank transfer, debit or credit card, and a transaction service like PayPal.
Step 3: Decide how much you want to invest
Choosing the right amount of money to buy Pearson stock might go without saying, but it is a crucial step that requires some thinking and planning. Outlining your budget’s boundaries helps you stay clear of financial issues. 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 Pearson stock
The next step is to place an order and buy PSON shares. Do the following:
- Step 1: Log into your brokerage platform and find Pearson’s ticker symbol PSON;
- Step 2: Type in the sum or the number of Pearson shares you want 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 means having to monitor and manage your portfolio regularly. It requires you to keep track of the market tendencies and frequently renew your knowledge of Pearson and the general state of the education sector.
Remember
Pearson stock price today
Pros and cons of buying Pearson stock (PSON)
Pros
- Diversification: Pearson deals with multiple segments of the education technology industry, including textbooks, online learning platforms, and upskilling services. This diversification can mitigate risk by spreading exposure across different markets;
- Stability and long-term potential: The education industry has shown resilience in economic downturns. Furthermore, there is a stable and growing demand for education services, especially online learning platforms. Pearson’s longevity and established position in the market show significant growth potential over time;
- Global reach: With an operational scope of 200+ countries, Pearson has a substantial global presence, allowing investors to tap into international markets and emerging economies’ education sectors;
- Dividend stock: Pearson is a dividend-paying stock, redistributing a portion of its profits to shareholders each quarter. As of December 2023, its annual dividend yield is 1.4%.
Cons
- Market volatility: The education industry is vulnerable to changes in government policies, budget constraints, and economic conditions. Education is primarily related to government spending, so shifts in state policies can lead to volatility in Pearson’s stock;
- Technological disruptions: The education industry has been disruptive recently, especially during COVID-19, and has remained as such due to the growth of online education. As a traditional education company, Pearson is still adapting to the changing landscape and competing with digital education providers;
- High debt: Pearson has had a relatively high level of debt, which can be an issue for some investors. High debt can limit effectiveness and increase interest costs, reducing profitability;
- Management changes: The company has announced a shift in leadership after only three years of Andy Bird’s leadership. Omar Abbosh, the ex-president of Microsoft’s industry solutions business, will be under test at the helm of Pearson.
Common mistakes to avoid when you buy Pearson stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research Pearson and its PSON stock in detail, along with the market state of the education industry, 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 Pearson stock
Where is Pearson's stock listed?
Pearson trades under the PSON ticker on the LSE and the PSO ticker on the NYSE.
How do I buy Pearson stock?
Traders can buy Pearson stock by relying on the services of an online broker like eToro.
Should I invest in Pearson?
The answer hinges on the current financial environment of the education sector and your predictions about Pearson’s future performance and pace of innovation. Make sure to do your own research before investing.
Does Pearson pay dividends?
Yes, Pearson has a history of paying dividends, with a dividend yield of 1.4% as of December 2023.
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.
