It would have been nice to have invested in Amazon a year ago. As COVID-19 resulted in a massive spike in online shopping, the value of Amazon stock doubled over the past year, rising from $ 1,770 to nearly $ 3,500.
If you had $ 5,000 worth of Amazon shares before the pandemic, you would now have $ 10,000 worth of Amazon shares – without lifting a finger.
Would you like to get involved? After all, online shopping is not going to go away anytime soon. Maybe you could invest in Amazon and reap the rewards.
Ah, but do you have $ 3,500 on hand? That’s the problem – even a single share of Amazon is very expensive.
However, don’t let that stop you. The thing is, you don’t have to buy an entire stock. You don’t have to have thousands of dollars burning a hole in your pocket. You can buy Part of a share for only $ 1.
How to own a piece of Amazon or Google – for less
Micro investing apps like Hide You can buy “fractional stocks” – fractions of stocks – from big companies like Amazon or Google or Netflix or Zoom for as little as $ 1. *
By buying fractional shares, you can invest in stocks or mutual funds that you normally cannot afford.
Check out these share prices from mid-October 2020:
- Amazon: $ 3,370
- Google (Alphabet): $ 1,565
- Netflix: $ 540
- Zoom: $ 510
- Tesla: $ 460
- Disney: $ 125
It would cost you a lot of money to buy full shares of these companies.
If you Sign in to Stashyou can choose to invest in stocks or mutual funds. For example, you can type “Amazon” into Stash’s search bar and you will immediately be given the option to invest in Amazon in increments of $ 5.
Rather than overwhelm you with technical jargon, Stash curates and categorizes these funds and gives them understandable names. You can invest in technology companies or green energy providers or cybersecurity companies through funds like “American Innovators”, “Clean & Green” or “Data Defenders”. Or you can invest in funds with names like “Roll with Buffett”, “Moderate Mix” or “Global Citizen”.
More and more young investors are buying partial shares
According to executives in the financial sector, the sale of partial shares is contributing to increased trading in stocks, especially in stocks in high-demand but high-priced technology stocks like Amazon.
Amazon remains one of the most popular stocks among millennial investors. But like I said, not everyone has $ 3,500 on hand.
It takes two minutes to register for stash. Also, Stash will give you a $ 5 sign-up bonus once you’ve deposited $ 5 into your account. Subscription plans start at $ 1 per month. **
* For securities priced above $ 1,000, fractional purchases start at $ 0.05.
** You also bear the standard fees and costs included in the pricing of the ETFs on your account, as well as fees for various ancillary services charged by Stash and the custodian.
This article originally appeared on www.thepennyhoarder.com