Buying shares in US dollars incurs a foreign exchange fee (typically around 1%) unless you fund the purchase from a US dollar account. Once you’ve identified the stocks you want to gift, it’s time to open a brokerage account. Moreover, it’s essential to diversify the stock portfolio to mitigate https://forexbitcoin.info/ risk. Consider gifting a mix of stocks from different industries or sectors to provide the recipient with exposure to a variety of market opportunities. To buy Apple or any other stock, you need an account for investing — and online brokers offer the easiest way to get up and running quickly.
Choosing stocks
Unlike conventional gifts, stocks have the potential for long-term growth, which makes them a thoughtful choice when immediate cash isn’t a priority. And because you are purchasing the shares at a discount, your gift recipient may have a head start on earning solid returns. Since the start of the pandemic, investing in the stock market has become more and more popular. With headlines of meme stocks, the latest cryptocurrency trends and everyday Americans making big money in the stock market, Americans are excited about investing — including kids. Before purchasing stocks, spend some time thinking about your investment goals. Investing always has some level of risk, and buying a large amount of shares in any company can be particularly risky.
- While you’re in the gift-giving spirit, you may also consider giving stock to a charity and securing a tax write-off for the stock’s fair market value in the process.
- For example, if a stock is trading at $100, and it has EPS of $5.25, then the company’s P/E ratio is 19.04.
- You can buy fractional shares, so you don’t need the money for a full share.
- It also produces various consumer and professional software applications such as iOS, macOS, iPadOS, watchOS, iCloud, AppleCare, Apple Pay, and accessories.
Give Them a Company They Love
If your gift recipient wants to either transfer the shares to a digital brokerage or sell the stock completely, the physical stock certificate must be mailed to a Direct Registration System (DRS). While individual shares are one way to invest in Apple, they’re not your only option. You could also buy shares of index funds or exchange-traded funds (ETFs) that own Apple. You can research funds and buy shares using an online brokerage account. The investing information provided on this page is for educational purposes only.
Exchange-Traded Fund (ETF)
It may also qualify you for shareholder perks specific to the company in question. Another useful research tool is brokers’ 12-month share price forecasts, which are available on financial websites. There are currently nearly 40 brokers following Apple shares, and their price forecasts can give an indication of the upside and downside potential of the Apple share price over the next year. Once you’ve decided which company to invest in, there are several steps to buying shares.
Apple’s last dividend declaration was paid on 18 May 2023 and worth $0.24 a share. Tax treatment depends on one’s individual circumstances and may be subject to future change. Apple sells and delivers digital content and applications through Apple Store, Apple Arcade, Apple News+, Apple Fitness+, Apple Card, Apple Pay and Apple Music.
If you plan to give stock to a minor, you can set up a custodial account on their behalf. You’ll then be in charge of the stock held in the account until the child reaches a certain age, usually 18 or 21. Hopefully by then, the beneficiary will be mature enough to manage their own finances and make smart investment decisions. Many online brokerages permit investors to buy fractional shares for as little as $1 to $10. When they go public, companies issue a set number of shares, each of which represents a portion of ownership. However, it is sometimes possible to buy a slice of one share or stock, called a fractional share, and to essentially invest a dollar amount of your choosing in a given company.
Type in Apple’s ticker symbol (AAPL) and the number of shares you want to buy or the amount of money you’re prepared to invest. You will be asked to complete a W-8BEN form (valid for three years) which allows you to benefit from a reduction in withholding tax for qualifying US dividends and interest from 30% to 15%. Holding US shares also carries exposure to foreign exchange risk. If the pound strengthens 3 great reasons to buy pinterest stock against the dollar, your shares will be worth less in sterling (and vice versa). Most brokerages also charge a slightly higher transaction fee for buying US, rather than UK, shares although it’s worth comparing the fees charged by different brokers if you plan to trade US shares regularly. The key investor takeaway is that investors need to understand the gift from the stock rally in 2023.