Microsoft is one of the most well-known technology companies on the planet. Microsoft’s products include Windows, Xbox, and Microsoft Office software.
Unlike in the past, you can now purchase shares in companies such as Microsoft entirely online. Our guide will show you how to open a brokerage account and start investing in Microsoft stock.
Quick Microsoft History
On April 4, 1975, Bill Gates and Paul Allen founded Microsoft Inc. Their corporate headquarters are located at One Microsoft Way in Redmond, Washington. The Xbox video game consoles and Microsoft Surface computers are two of Microsoft’s most popular products. Microsoft is well known for their Windows operating system, Microsoft Office, and the Internet Explorer browser.
In 1986, the company held its first initial public offering (IPO). The opening stock price of Microsoft’s initial public offering was only $21. Consumers have enjoyed the Windows user interface and functionality, especially the Microsoft Word, Excel, and PowerPoint programs. For decades, the Windows operating system has dominated the computing world.
The Good and the Bad of Microsoft Stock
There are many potential benefits to owning stocks or shares in a company. Here are some of the pros and cons of being a Microsoft shareholder.
Pros of Owning Amazon Stock
- Most manufacturers and consumers find the Windows operating system to be the most convenient and easy to use software in the workplace.
- Microsoft does not need to release new releases of Windows on a regular basis in order to profit from its operating system.
Cons of Owning Amazon Stock
- When competition on the stock market makes a development in an industry where Microsoft could have been competing more vigorously it’s a wasted opportunity that hurts potential earnings for shareholders.
- In virtually every market in which it participates, Microsoft faces strong competition. New competition will always be out there to challenge Microsoft’s market hold.
Outlook for Microsoft Stock
Microsoft recently reported $15.46 billion in third-quarter earnings, and $2.03 per share. For the first time, Microsoft reached $40 billion in quarterly revenue and $15 billion in quarterly earnings.
Azure, Microsoft’s cloud hosting service, saw a 50 percent increase in revenue in the first three months of the year. Xbox also has recently benefited from the recent Xbox Series X and Series S consoles.
Steps to Buy Microsoft Stock
To purchase Microsoft stock, you must first open a brokerage account, then a trading account, deposit money, and then begin purchasing shares.
Step 1: Choose Your Preferred Brokerage
To buy Microsoft stock, you must first find a brokerage that helps you to do so. If you want to buy the stock, you’ll need to find a broker that can link you to the NASDAQ, which is where it’s traded.
Step 2: Open Your Trading Account
After you’ve decided on the best brokerage for you, you’ll need to open an account with them. This account is only available through the internet, and it helps you to keep track of your portfolio’s stocks.
Step 3: Deposit Funds Into Your Account
You’ll be able to deposit funds to buy Microsoft stock after you’ve attached a bank credit/debit card to your account. The following step would be to determine how many Microsoft stock shares you want to purchase.
Step 4: Search for the Microsoft Ticker Symbol
Step 5: Purchase Microsoft Stock
The majority of brokers have a “deal ticket” at the bottom of each page where you can place your order. You’ll enter the sign and the number of shares you can afford on the broker’s order form.
The next step is to choose between market and limit order types. A market order will purchase the stock at the present price, while a limit order will only execute if the stock meets the price you define.
Is Microsoft Stock a Good Buy?
With a market capitalization of $1.8 trillion, Microsoft is one of the world’s most valuable companies. Microsoft’s financial success has been excellent in recent years, owing to the company’s growth and cloud computing sectors.
Microsoft is a highly successful company with unlimited capital and a good strategic presence in a variety of sectors. Right now this stock seems to be a decent addition to many portfolios based on its recent growth. If you have any questions about if this is the right company to invest in, feel free to reach out to a trusted financial advisor.