LinkedIn, the well-known business-focused social media platform, isn't publicly traded. However, investors looking to invest in LinkedIn's social media platform can invest in Microsoft, it’s parent company.
Shortly About LinkedIn
Founded in 2003 by Reid Hoffman and Eric Ly, LinkedIn is now owned by Microsoft (NASDAQ: MSFT). It is a business and employment-oriented social media platform serving as a hub for professional networking. Users can post their CVs, find job opportunities, and create online professional connections.
With over 830 million registered members across 200 countries and territories, LinkedIn is the largest platform of its kind. It offers various features, including event organization, group participation, article publication, and multimedia content sharing.
How to Invest in LinkedIn Stock in 2024?
Here's how to invest in Microsoft stock and indirectly in LinkedIn:
- Choose a brokerage platform that offers MSFT shares;
- Conduct research on Microsoft Corporation stock;
- Create and fund your brokerage account;
- Place a trade;
- Keep track of your investment and be aware of the potential risks.
Step 1. Open A Brokerage Account
? A brokerage account is an investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.
To start investing, you will need a brokerage account. There are many brokerage companies on the market. However, they differ in the broker's commission, the number of markets available for investing, the complexity of the platform, and the ease of opening an account.
To make the right choice, you should compare the fees, conditions, and how easily you understand the platform and the brokerage company's concept.
In this guide we will show how you can open such an account and buy MSFT stocks using eToro as an example.
| 1 | Register your account here. Registration is free, after it, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account. |
| 2 | Provide your personal details, such as your name, email address, and a password for your account. |
| 3 | Verify your email address by clicking on the link sent to you in an email from eToro. |
| 4 | Enter additional information, including your date of birth, address, and phone number. |
| 5 | Upload a copy of your government-issued ID (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement) to verify your identity. |
| 6 | Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets. |
Step 2. Make Your Research on Microsoft Corporation Stock
After deciding where to buy Microsoft Corporation (NASDAQ: MSFT) stocks, the next step is researching the company.
? If you want to gain practical trading experience and improve your investment strategies, consider opening a demo account. This feature provides a risk-free way to practice trading and test different investment strategies using virtual money.
This step is necessary to understand whether this company fits your financial goals and strategy. For such research to give good results, following questions should be considered:
- What is Microsoft Corporation (NASDAQ: MSFT)?
- What is the company's history, and how has it performed in the past?
- What are the risks associated with investing in the company?
- How does the company compare to its competitors?
- What is the company's strategy for growth?
To find answers, check the company's annual and quarterly reports, balance sheets, income statements. Its website and third-party evaluators for the comprehensive analysis. For instance, you can find a detailed report on Microsoft Corporation in our website here. All data is updated daily.
A lot of information can also be found in the company profile on the brokerage platform as well. However, it's essential also to consider other factors, such as industry trends, competition, management, and macroeconomic conditions, when making investment decisions.
Also, remember to regularly read the latest news and check what other investors think of the company.
Step 3. Determine How Much You Want to Invest and Your Risk Tolerance
To understand how much you want to invest, you must analyse your financial possibilities:
- Time horizon: Time horizon refers to the time an investor plans to hold an investment. It can be short-term (less than one year), medium-term (one to five years), or long-term (more than five years). The time horizon is an important consideration when choosing investments because it can impact the level of risk an investor is willing to take on and the expected return on investment.
- Risk tolerance: Risk tolerance measures how much risk an investor is willing to take. Some investors are comfortable taking on higher levels of risk in the hope of achieving higher returns, while others prefer to invest in lower-risk investments to preserve their capital. Various factors influence an investor's risk tolerance, including financial situation, investment goals, and personal preferences.
- Goals: Investor goals refer to the specific objectives an investor tries to achieve through their investments. These goals can vary widely depending on the individual. Still, some common examples include building wealth, generating income, preserving capital, or achieving a specific financial plan, such as saving for retirement or funding a child's education. Understanding your goals can help you make better decisions and develop a more effective investment strategy.
Before you choose the investment amount and frequency of contributions, it's essential to ensure that you have:
- An emergency fund that can cover 3-6 months of living expenses.
- A budget for your investing strategy.
It is vital to be ready emotionally as well. A "cold head" is the best helper.
Step 4. Place An Order
Once you've decided how much to invest in your chosen company's shares, you can place your order:
Market Order: Buys or sells stocks at the current market price, typically executed quickly.
Limit Order: Buys or sells stocks at a specified price or better, providing more price control but may not execute if the price isn't reached.
Choose the order type based on your investment strategy, risk tolerance, and goals. Consider market conditions and stock volatility before placing your order.
Step 5. Monitor Your Investment Regularly and Set a Stop-loss
When investing in the stock market, it's important to monitor your investments regularly and set a stop-loss to help protect your portfolio.
Monitoring your investments allows you to stay informed about the performance of your portfolio and make any necessary adjustments to your strategy. Setting a stop-loss order can help you limit your losses by automatically selling a stock if it falls below a certain price.
While it's crucial to keep an eye on your investments, it's also important to avoid overreacting to short-term fluctuations in the market. Remember that the stock market can be volatile, and it's not uncommon for stocks to experience short-term dips before rebounding. Setting a stop-loss and sticking to your investment strategy can help minimise your risk and stay on track to achieve your long-term goals.
Additionally, regularly reviewing your investment strategy is a good idea to ensure it's still aligned with your goals and risk tolerance. As your circumstances and priorities change, you may need to adjust your strategy to ensure that your investments continue to meet your needs. By staying informed, being proactive, and making thoughtful decisions, you can ensure that your assets work as hard for you as possible.
Read more about the stop-loss method.
