The General Electric Company (GE) is a Boston-based global organization that was founded in New York City. This stock has struggled on the market in recent years but investors are noticing it’s starting to gain traction again.
Our guide will show you how to open a brokerage account and how to start investing in General Electric stock.
Quick History of General Electric
General Electric was one of the first 12 firms to be included on the newly created Dow Jones Industrial Average. The National Electric Lamp Association (NELA) was incorporated into General Electric’s lighting business in 1911 and GE’s lighting division is headquartered in East Cleveland, Ohio.
In 1892, the Edison General Electric Company and two other electrical businesses merged to form the Edison General Electric Company. Thomas Alva Edison started Edison General in 1878 as the Edison Electric Light Company, to promote his incandescent light and other subsequent goods.
Electrical and electronic devices, aviation engines, and financial services, are among its offerings. GE sold a majority ownership in NBCUniversal to Comcast in 2011, and the remaining shares were bought two years later.
The Good and Bad of General Electric Stock
When you own shares of a company on the stock exchange you must be aware of all the benefits and disadvantages of the stock. Here are some of the benefits and drawbacks of holding General Electric stock.
Pros of Owning General Electric Stock
- Leadership has made significant transactions that make shares more appealing, particularly at their current cost.
- Stock analysts are starting to think that eventually this stock can flourish again if the right moves within the company are made which will lead to more impressive returns for investors.
- GE has also worked to construct a network of infrastructure of reliable partners throughout the country which can benefit investor dividends.
Cons of Owning General Electric Stock
- A constant complaint leveled against GE stock is that the underlying firm is still clinging to obsolete core operations. On the surface, the power sector appears to be a significant financial risk. This is because the world is rapidly transitioning to clean-energy sources.
- To re-establish its attractiveness, GE must perform a near-unprecedented recovery. Unfortunately, in order to achieve significant traction, initiating successful investments will be needed.
- General Electric is in severe debt, and former CEO Jeff Immelt is seen as mediocre, performance wise, in comparison to the previous CEO, Jack Welch. The stock has consistently underperformed for many years and is trading at record low numbers.
Outlook for General Electric Stock
The highest share price for General Electric in the previous 52 weeks was $14.42 USD, and the lowest price in the last 52 weeks was $5.93 USD. This corresponds to a 52-week price range of $5.93 – $14.42.
General Electric presently has 8.78 billion active shares in circulation, which are traded on the NYSE. The market capitalization of General Electric is $116.14B, with an average daily trading volume of 77,146,443 shares.
General Electric has a price earnings ratio ( PE ) of 471.41X and an EPS of .58 as of 2020. In general, a high P/E ratio for General Electric indicates that General Electric investors anticipate higher growth in the future.
Trading General Electric stocks and shares is best suited for long-term objectives. Historically, General Electric shares have provided superior long-term returns, typically over a ten-year period.
Steps to Buy General Electric Stock
Trading General Electric Stocks has advantages and disadvantages. To buy General Electric stock, you must first create a brokerage account, then a trading account, deposit cash, and then start buying shares.
Step 1: Select a Brokerage
A brokerage account is required to begin investing in General Electric but make sure that the brokerage you choose has access to the NYSE. Not all brokerages will allow you to purchase GE stock as not all brokerages have access to this stock exchange.
Opening a brokerage account with access to the NYSE will provide you with additional investment opportunities in addition to GE stock.
Step 2: Open the Trading Account
After you’ve decided which brokerage is best for you, you’ll need to open an account with them. This account will be used to make stock trades and post transactions.
Be sure to open a trading account to ensure that you will be able to purchase GE stock when the price is right.
Step 3: Deposit Funds Into the Account
Once you’ve linked an acceptable payment method to your account, you’ll be able to deposit funds to buy General Electric stock. You must decide how many shares of General Electric stock you want to acquire when your account has been properly activated.
This step is crucial as without active funds, you will be unable to make any purchases with the account.
Step 4: Search for the General Electric Ticker Symbol (GE)
You can search for stocks by using either the company’s name or the company’s ticker symbol. General Electric is listed on the NYSE by the symbol GE.
Step 5: Purchase General Electric Stock
Brokers will have a “deal ticket” at the bottom of each page where you may place your order. You will enter the symbol and the number of shares you wish to purchase on the broker’s order form.
You can buy as many shares as you like with a market order, or you may use a limit order to defer the purchase until the stock reaches a particular price.
Is General Electric a Good Buy?
Many investors currently advise against purchasing General Electric. If you happen to possess GE stock, professionals will advise you to sell it.
GE stock should be avoided since earnings have been declining for several years. However, after a catastrophic collapse in the market for coal and gas turbines used to produce power, GE stock seems to be finally regaining its footing. But, demand for wind and solar energy, in which GE has a developing business, continues to rise.
As GE’s financial situation improves, prospects for dividends can increase. If you would like to learn more information about how to successfully invest in the stock market, or how to invest in GE, then you should consider contacting a financial advisor to learn more.