How to Buy GME Stock – What is it? here in this post we talk all about the Gamestop stock buy review it’s worth or not.
What is Gamestop?
GameStop is an American high street shop that sells games, consoles, and other electronics.
You’ll find it between a donut shop and a makeup retailer in an American mall.
This is nothing new and exciting, in fact it was not doing very well due to the pandemic.
So what really happened?
As we mentioned, GameStop wasn’t exactly thriving.
With fewer people shopping due to the pandemic and most games being sold online, things weren’t looking great for the company.
People who buy and sell stocks often bet on which companies will not do well in the future.
They borrow shares in the company and sell them with a promise to buy them back later.
If you are sure the company will lose value, you will profit when you buy them back and the price drops.
GameStop Overview
GameStop is an American consumer electronics company traded on the NYSE under the ticker GME. It is known for selling video games, electronics and accessories, such as controllers or headsets. If you want to buy its stock you need to find a broker that gives you access to the NYSE as this is the main exchange it is traded on (stay tight, we’ll get into that in a bit).
None of this is to say that GameStop is a good or bad company. As part of this example, you would like to remind what you are considering investing in.
Let’s see the steps now!
How to Buy GME Stock – What is it?
Like most of us, you’ve probably envisioned buying shares of a company that skyrocketed in value in a few years, leaving you with enough money to travel and relax for the rest of your life. GameStop might as well be one of your top picks to buy its shares, or it will. In reality, investing is a bit more complicated than waiting for the birds to fly into your mouth, but hey, you’ve got to start somewhere?
The good news is that unlike days past, today you can buy stock in companies like GameStop entirely online.
While we don’t recommend buying GameStop stock specifically, this article explains in layman’s terms how you can buy shares in companies in general, taking GameStop as an example. It’s up to you to decide whether or not GameStop should be your first stock to buy. We strongly recommend contacting investment advisors as this article is not intended to be investment advice under any circumstances.
Steps to buy GameStop shares
Ok so for your own reasons you have decided that you want to buy GameStop. This is a good start. Before you can officially say you’re a GameStop shareholder, let’s see what’s in front of you! The process is the same for any company’s stocks and again, we’ll just take GameStop as an example.
Step 1: Find a Good Online Broker
One of the characteristics of an online broker is the number of exchanges they have access to. Not all brokers allow you to buy GameStop shares simply because they do not have access to the NYSE. Needless to say, you need a broker to give you access to this exchange.
The next important thing with a broker is that it should fit you as well. Not all brokers allow every citizen to open an account with them; Some brokers are prohibitively expensive if you want to buy some GameStop shares from time to time, while some brokers can be absolutely free. You can actually get good recommendations on choosing the right broker by using our questionnaire:
While recommending a broker, we take into account various factors such as the broker’s fees, trading platforms, markets accessible to trade and how easy it is to open an account. Security is also of utmost importance, but since we recommend only secure brokers, you do not need to worry about it.
Step 2: Open your brokerage account..
After finding your online broker, you will need to open an account. It is much like a regular bank account and opening it is usually a completely online process. For some brokers it is as fast as opening a new Gmail account, with some brokers it takes a few days until they do some background checks on you. You’ll be storing your shares on it rather than storing money on it, so you’ll definitely need it to buy and store GameStop shares.
Step 3: Fund your account
You would pay cash to buy those GameStop stocks. This cash first needs to be sent (deposited) to your broker. It’s usually super easy and quick, even easier than actually opening your brokerage account.
The most common way to deposit your money is by bank transfer and using a credit/debit card. With some brokers, you can also deposit into your investment account with various electronic wallets such as Paypal, e.g. on eToro.
Step 4: Buy GameStop Shares
You have an account, cash and stock target. The last step is to hit the Buy button! You log in to your online brokerage, search for GameStop stock, enter the number of shares you want to buy, and click Buy, which will initiate the purchase of shares (in trading parlance: execute a buy order). .
A few pointers about this: When placing an order, you can choose between different order types. Market order buys at the actual market price, while limit order allows you to specify the exact price at which you want to buy the shares.
Step 5: Review your Gamestop status regularly
You’re not finished after you’ve bought your GameStop stock. It is important to monitor your investments now. It basically means following your investment strategy. If you’ve bought GameStop stock to hold for the long term, you can attend the annual meeting and collect all the news and information about the company.
If you plan to sell it soon after seeing some increase in value, you can use various position management tools. eg. You can set the target price at which you want to sell the shares with a profit, or use the stop-loss to set the price at which you want to sell the shares to avoid further losses.
Now that you’ve mastered the 5 steps to buying shares, take a moment to look at the top 5 brokers we’ve handpicked for you.
What does Elon Musk have to do with this?
The Tesla boss loves a tweet — and when he does, the financial world takes notice. This one-word entry was enough to drive GameStop’s price up even higher.
Gamestonk!! https://t.co/RZtkDzAewJ
— Elon Musk (@elonmusk) January 26, 2021
What was the matter after all?
It is a good question.
For many of the people involved, it was just a laugh.
Some excitement, some time to spare – an experiment to see the power of internet communities.
Wall Street commentators called it a “phenomenon”, “crazy” and “like nothing [they’ve] ever seen”.
For many, its purpose was for stockbrokers and hedge funds to make money. Popular threads on Reddit have included people saying it was payback – revenge against the big money companies seen as the cause of the financial crash in 2008.
Analyst Neil Wilson says some traders had a “peculiarly cautious ethic”.
“They seem hell-bent on taking on Wall Street, they hate hedge funds and the threads are peppered with insults about ‘boomer’ money.
“This is a generational battle, about redistribution and robbing the rich to give to the millennial ‘poor’.
Source- BBC