Google is not just a search engine but a technology giant that has revolutionized the digital landscape. As its parent company, Alphabet, Inc., continues to grow and innovate, many investors are keen to get a piece of the action by buying Google stock.
In this article, we will guide you through the process of purchasing Google stock (GOOGL) and provide some essential tips to help you make informed investment decisions.
Table of Contents
How To Buy Google Stock
Step 1: Choosing the Right Stock: GOOGL vs. GOOG
Before diving into buying Google stock, it’s crucial to understand the different classes of Alphabet stock available. Alphabet offers two types of common stock: GOOGL (Class A) and GOOG (Class C). The primary distinction between the two lies in voting rights. GOOGL provides shareholders with voting rights, allowing them to have a say in the company’s affairs. GOOG, on the other hand, has no voting rights.
It’s worth noting that there is also Class B Google stock, which holds ten votes per share and is primarily owned by Google’s founders and key executives, giving them control over the company. While GOOGL may trade at a premium compared to GOOG due to its voting rights, their prices have been relatively similar since the stock split in 2014. Therefore, the choice between the two classes depends on whether you desire a symbolic voice in Google’s corporate matters or not.
Step 2: Opening an Investment Account
To purchase Google stock, you’ll need an investment account with a brokerage firm or an investment app. If you don’t have an existing account, it’s essential to choose a reputable and suitable option. Consider factors such as low investment minimums, fees, user-friendly platforms, and the availability of research and educational resources. You can check out our lists of best online brokers or investment apps to find the most suitable options for your needs.
Additionally, you should also consider the type of account you want to open. If you’re investing for retirement, an individual retirement account (IRA) can provide valuable tax benefits. Alternatively, if you’re investing for short-term goals or general wealth building, a taxable brokerage account would be more appropriate.
- Learn more about how to open a brokerage account.
Step 3: Determining Your Investment Strategy
Before investing in Google stock, it’s crucial to determine how much you want to invest and the investment strategy that suits your goals. Here are a few questions to consider:
- Budget: Assess your financial situation and ensure you have sufficient funds for expenses, retirement savings, and emergencies before investing in Google stock. Only invest leftover funds that you can afford to put at risk.
- Stock Price: As of early February 2023, both GOOGL and GOOG traded at around $100 per share. However, some brokerages allow you to buy fractional shares, enabling you to own a portion of a share for as little as $5. Check whether your chosen brokerage offers this option if you plan to invest smaller amounts.
- Investing Strategy: Determine whether you prefer to invest a lump sum or gradually accumulate shares over time. Dollar-cost averaging is a popular strategy where you invest a fixed amount at regular intervals, reducing the impact of short-term price fluctuations.
- Portfolio Allocation: Consider how Google fits into your overall investment portfolio. Diversification is essential, so assess how Google’s stock aligns with your existing holdings, such as other stocks, bonds, or funds.
Step 4: Conducting Research
Before purchasing Google stock, it’s essential to research the company’s financials, performance, risks, competitors, and future plans.
As a publicly traded company, Google submits quarterly and annual filings (Form 10-Q and Form 10-K) to the U.S. Securities and Exchange Commission (SEC). You can review these documents on Google’s investor relations site or search the SEC’s database.
To assist in understanding the information, you can rely on expert analyses from platforms like Morningstar, Forbes, or your brokerage’s research tools. These resources can provide valuable insights and help you make informed investment decisions.
Step 5: Buying Google Stock
Once you have opened your investment account and deposited funds, you can proceed to buy Google stock. Simply enter the company’s ticker symbol (GOOGL or GOOG) on your broker’s trading platform and indicate the dollar value you want to invest or the number of shares you wish to purchase.
Most brokers offer two types of orders: market orders and limit orders. Market orders allow you to buy or sell shares at the current market price, while limit orders enable you to set a specific price at which you want to buy or sell the stock. Choose the order type that aligns with your investment strategy and preferences.
Google stock trades on the Nasdaq exchange between 9:30 a.m. and 4:00 p.m. ET from Monday to Friday. Some brokerages may also provide extended pre-market or after-hours trading options.
Step 6: Monitoring Your Investment
After buying Google stock, it’s essential to regularly monitor your investment’s progress and assess whether it aligns with your goals. Compare Google’s performance to benchmark indexes such as the S&P 500 to gauge its relative performance. Additionally, review the company’s financials through its filings to stay informed about its growth trajectory.
Remember that investing requires diligence and attention. Even with a successful stock like Google, it’s important to periodically evaluate and adjust your investment strategy to stay on track towards your financial objectives.
How to Sell Google Stock
Selling your Google stocks is a straightforward process:
- To begin, log into your brokerage account or investment platform.
- Locate the trading or portfolio section and search for the ticker symbol representing Google stock (GOOGL or GOOG).
- Enter the number of shares you wish to sell or the dollar amount you want to sell.
- Choose the type of order you prefer, such as a market order to sell at the current price or a limit order to set a specific selling price.
- Confirm the details and submit your sell order. Your brokerage will execute the trade, and the proceeds from the sale will be credited to your account.
Other Investment Options
While investing in individual stocks like Google can be rewarding, it also carries inherent risks. Financial advisors recommend diversifying your portfolio by investing in a broader range of stocks.
One popular approach is investing in index funds or exchange-traded funds (ETFs) that aim to replicate the performance of major market indexes such as the S&P 500. These funds provide exposure to hundreds of investments through a single share.
Fortunately, Google is a component of many index funds, including approximately 7% of Nasdaq 100 funds and 4% of S&P 500 funds. By investing in these funds, you can gain exposure to Google and other companies while spreading your risk across multiple investments.
Learn more:
Google Stock Split History
Google has a history of stock splits aimed at decreasing the share price and increasing liquidity. Stock splits are designed to make the stock more affordable for investors and enhance trading activity.
Since going public on August 19, 2004, Google has undergone two stock splits. The first split took place on April 3, 2014, when the stock split two-for-one. This split introduced Class C shares, represented by the ticker symbol GOOG, alongside the existing Class A shares (GOOGL). While the prices of GOOG and GOOGL may vary slightly, they generally move in sync with each other.
The most recent stock split occurred on July 18, 2022, and was a significant 20-for-one split. This split affected both the GOOG and GOOGL shares, reducing their respective prices dramatically. Prior to the split, the shares were trading at almost $3,000 each, but after the split, the prices dropped to around $100 per share.
These stock splits have allowed existing shareholders to have more shares at a lower price, providing them with increased ownership. Moreover, new investors can enter the market at a more affordable price per share, making it accessible to a broader range of investors.
Stock splits are a common strategy employed by companies to manage their share prices and enhance liquidity. For Google, these splits have made the stock more accessible and attractive to investors, contributing to its widespread popularity.
