Summary: Since it’s a publicly traded company, the most convenient way to buy Microsoft stock (NASDAQ: MSFT) is through a regulated online broker platform like eToro.
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About Microsoft
Founded in 1975 by Bill Gates and Paul Allen, Microsoft has grown into one of the world’s leading technology giants. They are known for their software products like Windows operating systems, Microsoft Office suite, and cloud computing services through Azure, as well as their popular Xbox gaming consoles. As such, Microsoft’s consistent innovation and market presence have made it a staple in many investment portfolios.
Microsoft IPO
Before buying Microsoft stock, it’s key to understand its initial public offering (IPO) from 1986. Notably, an IPO is when a company offers its shares to the public for the first time. In this case, Microsoft’s IPO was a significant event in the world of finance, and those who invested early have seen substantial returns.
Here’s a brief overview of Microsoft’s IPO:
- Date: Microsoft went public on March 13, 1986;
- Share price: The initial share price was $21 per share;
- Growth: Since its IPO, Microsoft has split its shares multiple times, leading to significant growth in the number of shares held by investors.
How to buy Microsoft stock: Step-by-step process
Now, let’s get into the nitty-gritty of how you can buy Microsoft stock. Follow these steps:
Step 1: Choose a brokerage account
The first thing to do before you can buy MSFT stock is to select a reputable online brokerage platform. There are various brokers online; however, it’s key to choose the one that suits your investment strategy the best. You should, therefore, compare potential candidates in terms of fees, user-friendliness, and MSFT stock availability.
When it comes to buying Microsoft stock, our go-to brokerage is eToro, which is one of the most popular platforms worldwide. With over 30 million registered accounts and licenses from regulatory bodies like FinCEN, eToro also offers a host of great features for all kinds of investors, including:
- 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
-
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.
Step 2: Deposit funds
Once you’ve picked a brokerage platform, the subsequent task is to fund your newly-made account. This involves linking your bank account with your brokerage account and initiating a transfer of funds. Therefore, it’s crucial to verify that your brokerage account contains an adequate balance to accommodate the acquisition of MSFT shares.
Step 3: Place an order
The following step in the process of buying Microsoft stock involves placing an order. This means logging into your brokerage account initially and then conducting a search for the stock. You can accomplish this by either entering Microsoft or its ticker symbol, MSFT. Once located, click on the stock symbol to access its detailed information.
Following this, simply opt for the Buy option and input the desired number of shares you intend to purchase. Afterward, select your preferred order type, such as a market order or a limit order, and take a moment to review your order before submitting it.
Step 4: Monitor your investment
After purchasing Microsoft stock, the final step involves keeping an eye out for its performance through your brokerage account. Depending on the brokerage you decide on, you’ll be able to track the stock’s price, dividends (if any), and overall portfolio performance all while logged into your account.
Pros and cons of buying Microsoft stock
Like all investing, buying Microsoft stock comes with its own set of advantages and disadvantages. Some of them include:
Pros
- Strong financials: Consistent revenue growth and profitability;
- Diverse business segments: Cloud (Azure), software (Office), and hardware;
- Market leader: Dominance in enterprise software and cloud computing;
- Innovative growth: Investments in AI, gaming, and productivity tools;
- Dividend payout: Regular and increasing dividends, appealing for income investors;
- Economic moat: High barriers to entry for competitors.
Cons
- High valuation: Premium pricing compared to industry peers;
- Regulatory risks: Antitrust scrutiny and potential government actions;
- Competition: Increase rivalry in cloud and AI markets;
- Macroeconomic sensitivity: Impact of global economic slowdowns on business spending;
- Slow growth in legacy segments: Decline in PC-related businesses;
- Market saturation: Limited upside in mature software markets.
MSFT stock price today
Common mistakes to avoid when buying stocks
While investing in stocks like Microsoft can be a wise decision, it’s essential to avoid common mistakes and pitfalls:
- Lack of research: Don’t invest blindly. Instead, always research the company and its financials before buying its stock;
- Emotional investing: Avoid making decisions based on emotions. Stock prices can be volatile, but it’s crucial to stick to your investment strategy;
- Ignoring diversification: Don’t put all your money into a single stock. Make sure that you diversify your portfolio to spread risk;
- Neglecting long-term perspective: Stocks can be long-term investments. So, don’t panic during short-term market fluctuations.
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 Microsoft stock
Can I buy Microsoft stock directly from the company?
No, Microsoft typically doesn’t sell its stock directly to individual investors. You’ll need to use a brokerage platform like eToro to purchase MSFT shares.
Is Microsoft a good long-term investment?
Many investors believe Microsoft is a solid long-term investment due to its history of growth and diversified product offerings. However, it’s essential to do your research and consider your own financial goals.
How do dividends work with Microsoft stock?
Microsoft pays dividends to its shareholders every quarter. The amount you receive depends on the number of shares you own and the dividend rate declared by the company.
What's the minimum amount of money I need to invest in Microsoft stock?
There is no set minimum investment for buying Microsoft stock, but keep in mind that brokerage platforms may have their own account funding requirements.
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.
