Some years ago buying shares of US companies would have seemed almost impossible or even if possible, daunting. However, online trading platforms have made things such as buying shares in US companies easier than they used to be.. This article will help you understand how shares work and the process of buying shares in US companies like Facebook, Amazon, etc.
What Are Shares and How Do They Work?
Shares, also known as stocks or equities, represent ownership in a company. When you purchase a company’s shares, you’re essentially buying a part of that company relative to how much you buy. As a shareholder, you stand to benefit either by dividends or by selling your shares for a profit.
Shares are bought and sold on the stock market, and for US companies, this typically happens on exchanges like the New York Stock Exchange (NYSE). Although these exchanges are based in the US, Nigerian investors can access them through online brokerage platforms, making it possible to buy shares from anywhere in the world.
Steps to Buy Shares in Some US Companies
Investing in US companies from Nigeria can be done in several ways. Here’s how;
1. Choose an Online Brokerage Platform
The first step in buying shares of US companies is to select a reliable online brokerage platform that allows Nigerian investors to trade US stocks. There are many platforms available such as e Toro, TD Ameritrade, Bamboo and others. They provide access to a range of US-listed companies, including Meta, Coca-Cola, Apple, and others.
2. Open a Trading Account
Once you’ve chosen a trading platform, you will need to open a trading account and provide personal details like your name, age, email, etc. Some platforms will also require proof of identity (such as your international passport or driver’s license) and proof of address (utility bill) to comply with regulations. After completing this process, you can move forward.
3. Fund Your Account
After setting up your account, you’ll need to fund it to start buying shares. Most online platforms accept a variety of funding methods, including bank transfers, debit/credit cards, and PayPal. Nigerian investors may need to fund their accounts using USD or NGN, depending on the platform’s supported currencies. Be aware of any fees associated with funding your account, especially if you’re transferring funds internationally.
4. Search for the US Companies You Want to Invest In
With your account funded, you can start searching for the stocks you want to buy. Each US company has a unique ticker symbol (a short code used to identify it on the stock exchange). For example, Facebook (Meta) is listed under the ticker symbol “META” and Coca-Cola is “KO.” Simply search for these ticker symbols on the platform, and you’ll see the company’s stock performance, current price, and other relevant details to help you make an informed decision.
5. Place Your Order
Once you’ve selected the stock, you can place your order. You typically have two order options which are the Market and Limit Order. The Market Order allows you to buy the stock at its current market price and the Limit Order lets you set a specific price at which you’re willing to buy the stock.
Once your order is placed successfully, you’ll officially own shares in the company.
Conclusion
Online brokerage platforms have made it easy to buy shares in US companies. By choosing a platform, opening an account, funding it, selecting your shares, and placing orders, you can easily invest in world-leading companies like Meta, Coca-Cola, and Apple. However, be careful to research thoroughly and invest wisely