Summary: You can’t buy TikTok stock as the company isn’t traded publicly. However, you can invest indirectly in TikTok through KKR or SoftBank Group, the two global investing firms that own ByteDance, TikTok’s parent company. The most convenient way to do so is through a regulated online broker, such as eToro.
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About TikTok
Owned by the Chinese tech giant ByteDance, TikTok is a social media platform that allows users to create, share, and discover short videos set to music. Launched in 2016, the app has rapidly grown in popularity, boasting over a billion users worldwide.
TikTok’s engaging and user-friendly interface has captivated users of all ages, making it a cultural phenomenon and an attractive investment opportunity. In fact, it generated $1.3 billion from in-app purchases in Q2 2024.
TikTok IPO
While TikTok has yet to announce an IPO, rumors and discussions surrounding the potential for an IPO have been circulating for some time. However, there’s currently no way to directly buy its stock. Of course, that doesn’t mean that you can’t do it indirectly.
Namely, TikTok has a parent company, ByteDance. You can invest in ByteDance through KKR or SoftBank Group stock—the two global investing firms that own ByteDance. So, let’s move on to how you can indirectly buy TikTok stocks.
How to buy TikTok stock: Step-by-step process
As mentioned, TikTok isn’t traded publicly, so to invest in it, you’ll need to do it indirectly through its parent company owners, KKR and SoftBank Group. Here’s a step-by-step guide on how to buy their shares:
Step 1: Educate yourself
Before diving into the stock market, it’s crucial to understand how investing works. Therefore, take your time and learn about stocks, investment strategies, and market trends. This knowledge will empower you to make well-informed decisions and will allow you to move forward.
Step 2: Choose an online broker
To buy KKR or SoftBank Group stocks, you’ll need a brokerage account. So, the next step on your investment journey is to research different online brokerage platforms and choose the one that suits your needs best. Be sure to focus on:
- How user-friendly the platform is;
- Does it offer reasonable fees:
- How reliable and safe it is to use it.
Our go-to brokerage for buying KKR or SoftBank Group stocks is eToro. This is a licensed and regulated brokerage by FinCEN in the US. Furthermore, eToro is also used by over 30 million investors worldwide because it provides:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares;
- 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.
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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 3: Open an account
The next step is to sign up for an account with your chosen brokerage platform. However, note that you’ll need to provide personal information and financial details. The brokerage will verify your identity before granting you access to the trading platform. Regardless of which brokerage you pick, the process will be all but complicated.
Step 4: Fund your account
With a newly-made account, you’ll next need to transfer funds into it. This is the money that you’ll use to purchase either KKR or SoftBank Group stock or both. Luckily, most brokers offer various funding options, including bank transfers and credit/debit card payments.
Step 5: Search for KKR or SoftBank Group
Once your account is funded, use the brokerage’s search function to find KKR or SoftBank Group stocks. To do so for KKR, search for its ticker symbol KKR, under which it’s listed on the New York Stock Exchange (NYSE). Similarly, SoftBank Group’s stock is traded on various stock exchanges, including the London Stock Exchange (LSE), and the ticker symbol for the company’s stock is OR15.
Step 6: Place an order
When you locate one of two desired stocks, you’ll have the option to place an order. There are two primary types of orders—market orders and limit orders.
- A market order buys the stock at the current market price;
- A limit order lets you specify the maximum price you’re willing to pay.
Step 7: Monitor your investment
After your order is executed, you will officially own one of the two mentioned stocks. However, keep an eye on the stock’s performance through your brokerage account’s dashboard. Also, remember that stock prices can be volatile, so it’s important to stay informed.
KKR and SoftBank Group stock prices today
Pros and cons of indirectly investing in TikTok
Pros
- Diversified exposure: Both KKR and SoftBank invest across a variety of industries, reducing risk compared to direct investment in TikTok;
- Access to growth potential: ByteDance is a high-growth entity in the social media and technology space;
- Experienced management: KKR and SoftBank are established investment firms with expertise in managing complex investments;
- Lower volatility: Investments in TikTok are part of broader portfolios, potentially smoothing out individual volatility.
Cons
- Limited control: Indirect investments mean reduced influence over TikTok’s specific outcomes;
- Opaque valuation: ByteDance is a private company, so TikTok’s valuation may not be fully transparent;
- Broader risk exposure: Investments in KKR or SoftBank expose you to risks from other unrelated portfolio companies;
- Regulatory risks: TikTok faces regulatory scrutiny, especially in the US and other countries, which could affect returns.
Pitfalls to avoid when buying stocks
While investing in stocks can be rewarding, there are pitfalls to avoid. Here are some common mistakes to steer clear of:
- Emotional investing: Making investment decisions based on emotions rather than facts can lead to poor outcomes. So, stay rational and focused on your long-term goals;
- Ignoring research: Failing to research a company’s financials, performance, and market trends can lead to uninformed decisions;
- Overlooking fees: Whether it’s brokerage fees, trading commissions, or fund management fees, these costs can add up and impact your returns;
- Chasing trends: Jumping on a stock solely because it’s trendy can be risky. Conduct thorough research before investing;
- Neglecting diversification: Putting all your funds into a single stock or sector increases your exposure to risk. Diversification is key to a balanced portfolio.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs
Is TikTok stock available for purchase?
As of now, TikTok has not gone public. However, you should keep an eye on news and announcements regarding TikTok’s IPO for updates on its availability.
Can I buy TikTok stock directly?
When TikTok goes public, you should be able to buy its stock directly through a brokerage platform.
Are there alternatives to buying TikTok stock directly?
Yes, you can invest indirectly in TikTok by purchasing KKR or SoftBank Group stocks, as these two companies own TikTok’s parent company, ByteDance.
What's the minimum amount of money I need to start investing in stocks?
The minimum amount varies by brokerage platform. Some have no minimum requirement, while others may ask for a specific initial deposit.
Is investing in stocks risky?
Yes, investing in stocks carries inherent risks. Stock prices can be volatile, and there’s a possibility of losing money. It’s, therefore, important to be well-informed and prepared to withstand market fluctuations.
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.
