Regardless of market forecasts, most investors still opt to buy and sell shares of reputable, multinational companies. Due to their history, track record, and well-established customer base, there is always an expectation of reliability. Moreover, there is even more trust in companies that foster digitalization in the digital age, regardless of their industry, because there are more prospects for companies in the digital space – practically every industry.
PayPal falls under the category of such companies. It is undoubtedly one of the world’s largest and most well-known digital payment platforms. Since its establishment in 1998, it has achieved many significant milestones, including becoming a Fortune 50o company, and has amassed over 427 million active customers. Therefore, despite some pessimistic PayPal stock forecasts in 2022, many investors still intend to buy, hold, and sell PayPal stocks in the future. However, if you also harbour such intentions, it is essential to know the vital steps to be taken and the factors to be considered.
PRACTICAL TIPS FOR BUYING AND SELLING
Recently, PayPal has made it easier for prospective investors to trade in its stocks by including cryptocurrency trading and Buy Now Pay Later (BNPL) services. Therefore, if you feel, whether based on stock predictions or not, that the company is positioned for growth, here’s how you can get in on the action:
Opening an Investment Account
Before purchasing or selling PayPal shares, you must select a broker and set up an investment account. Brokers carry out trades by serving as a middleman for you and the markets. They also keep you in the loop as regards the recent PayPal stock forecasts and predictions, which you may factor in before making certain investments. From low-cost internet brokers that let you trade stocks on your own to full-service brokers who are more expensive but offer seasoned investment management services, you are at liberty to select your preferred broker. Broker fees and account minimums might vary. Therefore, you should shop for one with an affordable “account minimum” and minimal fees. This way, you can begin investing as quickly as possible.
You should also consider the type of brokerage account you will open, which generally will be one of the following:
- You can save for retirement through individual retirement accounts (IRAs). Your IRA contributions might be tax deductible, depending on your IRA and if you have a company/ employer-sponsored plan.
- Taxable brokerage accounts give greater flexibility but do not have the tax advantages of an IRA. There will be no annual contribution caps and no fees associated with money withdrawals.
Decide how Much Money to Invest
After looking at the market, analyzing stock market forecasts and whatnot, and selecting a broker, the next step is to decide how much of your money will be invested in PayPal. When making this decision, certain factors should be considered. Some of them include:
- Your overall investment budget. When it comes to companies such as PayPal, your investments should be targeted to become profitable in the long term. Therefore, the money set aside to make PayPal investments should be different from those meant for short-term purposes or emergencies.
- PayPal’s current stock price. At the time you’re making your investment, you will be required to deposit at least the current stock price of PayPal into your brokerage account. For example, the company’s stock price as of April 2022 was around $84, which means you will have to deposit up to that amount to purchase one share. However, some brokers may allow you to purchase just a portion of one share, often called fractional shares.
- It would help if you also considered how well investing in PayPal fits into your general investment portfolio. The most common recommendation by experts is to have a diversified portfolio in different company sticks and industries to minimize your risk level.
- Finally, it would help if you had a sound investment strategy, such as dollar cost averaging, to limit the funds put into an investment and boost your returns.
Image by Gerd Altmann from Pixabay
Conducting your Due Diligence on PayPal
Buying stocks in a company such as PayPal should be done with diligence and meticulousness, especially when your investment in the company is significant. It is not enough to rely on PayPal stock forecasts and predictions to make your investment; one should also conduct as much extensive research as possible. For example, review the company’s financial statements, annual reports, and investor presentations before placing orders for its shares.
You never know the piece of information that will guide you in adjusting your investment details and prevent you from making costly mistakes.
OTHER STEPS
After you have taken the necessary precautions and considered the right factors, take the following steps to purchase your PayPal stock finally:
- Proceed to place an order for your PayPal stock, either by:
- Placing a Market Order (at the current market price) or;
- A Limit Order (processed when the stock reaches a particular price or surpasses it).
- Evaluate your investment status by being proactive and current with market events. For example, monitor PayPal stock value and forecast to know where your investment stands.
Selling PayPal Stock
If you choose to sell your PayPal shares, you should consult with a tax expert before taking any steps. A tax expert can assist you in developing a strategy for managing your investments and taxes. If your shares have increased in value (or are likely to, based on forecasts and market conditions), you should anticipate paying capital gains taxes whenever you sell your shares, Where the tax expert comes in.
To complete the sale of your shares, log onto your broker’s trading platform, then indicate PayPal’s ticker symbol and your desired selling price. Similar to buying stocks, you can often choose a market order to sell shares immediately or your specified sale price.
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