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- You can buy Disney shares by opening a brokerage account or by trading shares directly through Computershare.
- It is wise to research company finances before adding stocks to your portfolio.
- After buying a piece of Disney, you will need to develop an investment strategy to generate returns.
Disney shares increased in late November 2022 after its former CEO, Bob Iger, announced his return as CEO. Although the stock fell earlier in 2022 (like many others), the news sent its price up nearly 10%.
If you want to get a share of the entertainment company, you can buy shares directly or create an account with an investment platform or brokerage. Another option is to hire a Financial Advisorbut we’ll focus primarily on ways to invest in Disney for those who prefer the DIY approach.
1. Create a brokerage account
If you don’t want the help of a financial advisor or investment firm, you’ll need to use a brokerage account to trade Disney stock. Brokerage accounts allow you to invest in a wide range of asset types, including stocks, AND Foptions, mutual fundbonds, etc
And you can invest with several types of accounts. These include individual and joint brokerage accounts, IRAmargin accounts, trusts, deposit accounts, and more. The most competitive brokerages also offer things like fractional shares, commission-free trading, easily accessible customer support, as well as investor education and market analysis resources.
But stocks aren’t the only way to get into Disney. You can also invest in Disney through different funds, explains Dominique Broadway, personal finance expert and founder of Finances demystified.
“It’s part of the S&P500so you can access it in the SPY fund or the Vanguard Total Stock Market Index fund,” she said. Many large funds, she added, also contain Disney stocks, so you can always expose without having all of your money in stock.
But that’s not to say that one approach (ie investing in individual stocks or using funds) is better than the other. Both can be good, according to Broadway, but it really depends on your personal risk tolerance and investment goals.
Buy shares directly
Assuming you’re on the standalone trading route, you can also buy Disney stock directly through The Walt Disney Company Investment Plan. In order to create an account, you will either need to make an initial investment of $250 or contribute a minimum of $50 each month.
Once enrolled in the plan, you will have access to an online account through which you can buy and sell shares. It is available through Computershare and automatically reinvests all cash dividends in additional Disney shares.
2. Research Disney finances
Before adding Disney to your portfolio, it’s wise to evaluate the company holistically. You can inform your decision using several resources, including historical and current stock performance data, income statements, balance sheets, quarterly company earnings reports, research reports, and expert analysis.
Additionally, it also helps keep tabs on how Disney is performing against the broader entertainment industry, and you’ll want to pay attention to economic factors (e.g. rising or falling interest rate) which can have a direct impact on the performance of the share.
Although it is a blue chip stocksDisney turned out to be volatiletherefore, it is not a good idea for people nearing retirement or investors who cannot withstand frequent price movements.
3. Determine the amount to invest and place an order
Initial investment amounts vary for investors due to factors such as disposable income, risk tolerance, time horizon and investment objectives. In addition, your target returns also influence the amount you will invest in a security.
But whatever amount you decide to invest, it’s a good idea to have a solid emergency fund in place before you start investing. Emergency funds cover three to six months of living expenses and can be a great lifeline when the unexpected happens in life.
Once you have chosen an investment amount, you will need to select an order type before purchasing the asset. Order types give you authority over the final price at which your order executes. There are generally four types:
- market order: When you choose this type of order, the brokerage executes the transaction immediately. In other words, you get the stock price selected by the brokerage.
- Limit order: These orders allow you to provide a limit price for the stock(s) you want. This means that your broker will only execute the order at that price limit or better. If the platform cannot meet the limit you specified, it will not fulfill the order.
- stop order: With stop orders or stop-loss orders, you are telling the brokerage to only buy stocks once they have reached a certain price. For example, if Disney hits a price you set, the order becomes a market order and your broker executes it immediately.
- Stop limit order: As with stop orders, the concept of stop price is the same for stop-limit orders. The difference is that your order becomes a limit order once the value of the investment share reaches your specified price. This means that the order will only be executed at this price or better.
After your purchase, the next step is to develop an investment strategy that helps you build wealth and achieve the goals you have in mind.
4. Review your purchase and monitor your investment
When it comes to checking the performance of your investments, you don’t necessarily need to do it every minute, but it is essential that you regularly monitor your actions while developing and implementing a plan to improve. their value.
However, investing is not black and white, so you can certainly build a portfolio that uses a mix of both strategies. For example, you might decide to use the average dollar cost to Disney, while investing a lump sum in a fund and relying on buy and hold.
And it’s totally understandable if you’re hesitant to get started, or if you’re not sure whether to use stocks or funds.
“I’m definitely more of a stockholder because I like to see the higher returns that stocks can offer,” Broadway says. If you’re not necessarily very concerned, she added, with very high yields, or if you’d much rather have exposure to Disney without looking at it, then investing in funds may be the way to go.
However, if you are unsure which approach to take, you can consult a financial adviser or open an account with a robo-advisor.
How to Sell Disney Stock
The process of selling a stock is similar to buying a stock. You will need to click on the “trade” section of your investment platform’s website or mobile app. After this step, you can usually sell either an exact dollar amount or a certain number of shares.
But you will still be responsible for capital gains taxes whether your investment is producing returns. If you sell Disney within one year of purchase, you will have to pay short-term capital gains taxes. If you hold the stock for a year or more and generate returns, you will need to consider long-term capital gains taxes. Tax rates on short-term gains are generally higher than those on long-term gains.
The bottom line
If you want to buy Disney stock without the help of a financial advisor, you will need to either set up a brokerage account or open an account through Disney’s Computershare program to buy stock directly. It’s also best to carefully monitor the company’s finances and performance before you buy the stock and while you own it.
However, whichever method you choose, you will need to develop an investment strategy that complements both your risk tolerance and time horizon and helps you achieve your goals.
“The best time to start is now,” says Broadway. “If you’re trying to decide when to get in, start now and put yourself to the test. Really start investing in businesses you love and already love.”