Investing in global technology giants like Amazon has become increasingly accessible for Indian investors. With the rise of digital platforms and liberalised remittance schemes, individuals can now participate in the growth of companies like Amazon from the comfort of their homes. This guide provides a comprehensive overview of Amazon's history, steps to invest in its stock, and methods to trade its shares, tailored specifically for the Indian audience.
About Amazon - A brief history
Amazon was founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington, initially as an online bookstore. The company quickly diversified, adding music, videos, and other products to its offerings. In 1997, Amazon went public, and by 2002, it launched Amazon Web Services (AWS), providing cloud computing services. The acquisition of Whole Foods in 2017 marked its significant entry into physical retail. Today, Amazon stands as a global leader in e-commerce, cloud computing, and digital streaming, with a presence in over 50 countries.
How to buy Amazon stock?
Indian investors can purchase Amazon stock through various international brokerage platforms that facilitate investments in U.S. equities. These platforms allow for fractional share investing, making it affordable to invest in high-priced stocks like Amazon. The process typically involves opening an account, completing KYC procedures, funding the account, and placing a buy order for Amazon shares.
1. Do your research into Amazon
Before investing, it's crucial to understand Amazon's business model, revenue streams, and market position. Amazon operates in various sectors, including e-commerce, cloud computing through AWS, digital streaming, and artificial intelligence. Reviewing the company's financial statements, annual reports, and market analyses can provide insights into its performance and future prospects. Staying updated with news and developments related to Amazon can also inform investment decisions.
2. Decide whether you should buy Amazon stock
Assess your investment goals, risk tolerance, and time horizon to determine if Amazon aligns with your portfolio strategy. Consider factors such as the company's growth potential, market volatility, and your financial objectives. Consulting with a financial advisor can also help in making an informed decision tailored to your individual circumstances.
3. Consider how much to invest in Amazon
Determine the amount you wish to invest in Amazon, keeping in mind the importance of portfolio diversification. It's advisable not to allocate a disproportionate amount of your investment capital to a single stock. Platforms offering fractional shares enable you to invest smaller amounts, allowing for better risk management and exposure to multiple assets.
4. Open a brokerage account
To invest in Amazon, you'll need to open an account with a brokerage that offers access to U.S. stock markets. Various broking platforms help and appreciate facilitate such investments for Indian residents. The account opening process involves providing personal information, completing KYC verification, and linking a bank account for fund transfers.
5. Buy Amazon stock
Once your brokerage account is set up and funded, you can proceed to purchase Amazon shares. Search for Amazon using its ticker symbol "AMZN," specify the number of shares or the amount you wish to invest, and place your buy order. Review the order details before confirming the transaction to ensure accuracy.
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How to trade Amazon shares?
Beyond traditional investing, trading Amazon shares involves strategies like buying and selling based on short-term price movements. Methods include day trading, swing trading, and using derivatives like options and CFDs (Contracts for Difference). These approaches require a deeper understanding of market trends, technical analysis, and risk management. Platforms like IG International and Capital.com offer resources and tools for trading Amazon shares.
Conclusion
Investing in Amazon offers Indian investors a platform to invest on the global front. With the availability of international brokerage platforms, the process has become more accessible and straightforward. By conducting thorough research, assessing personal financial goals, and utilising the right tools, investors can make informed decisions and potentially benefit from Amazon's continued expansion and innovation.
