How to Buy Shares in Zoom-Zoom has outlived other video call software applications like Skype which was considered a great prospect many years ago. The game of buying tech stocks involves a little luck and a lot of smartness to make profits.
Before 2019, Zoom shares were never listed. When the shares were offered to the public, it was at a ridiculous price of $36 (Not so ridiculous though). By the end of 2019, smart investors quickly grabbed as much Zoom shares as they could get their hands on.
This happened because the investors figured out there will be an increase in the number of video communications, leading to the increase of Zoom shares. Consequently, Zoom shares increased by 750% in ten months.
From the beginning of 2020 when the Corona Virus started gaining a stronghold around most countries in the world, forcing organizations to close down, there was a great increase in the need for online conferences, online meetings, online schooling most of which could be easily carried out through Zoom.
This occurrence pushed the cost of Zoom shares as high as $588, giving a return of more than fifteen times apart from the money invested. The only people who benefited greatly from this are the investors that foresaw that there would be lockdown in most countries and all over the world.
Note that the massive purchase of shares by the investors could have led to a huge loss too. This shows that purchasing shares in Zoom and other tech companies can give you a lot of rewards and losses at the same time.
Especially for tech startups, the losses could be very high. The best time to buy shares in Zoom was in 2019, when the shares were listed for $36. However, this does not mean that investors who join late cannot make profits as well, and this is why the stock investments sector is great.
Small tech stocks are great deals when you invest in them. You must learn to foresee circumstances and know when to let go of the stocks. Investors who bought Skype shares many years ago went into losses, majorly. After Skype was acquired by Microsoft in 2011, the platform cruised to failure.
Before then, Skype was the top video meeting platform. Investors who had shares before 2005 and sold them in 2005 got so much profit, but other investors went into a loss.
Investing in stocks is a high risk business and if you are a newbie, you may lose money to other factors like fake brokers.
What to Know About Zoom
Zoom was established in 2011, just in time to take over the users of Skype. Microsoft acquired Skype the same year but failed to develop it, giving the opportunity for growth to Zoom.
Zoom offers services that are very much required for remote work and study, including teleconferencing, video conferencing, and online chat.
Zoom is more user-friendly and is designed to meet the exact expectations of people who want its services. This has resulted in Zoom taking over the video-conferencing business, with the only large contender being Google Meet.
Zoom shares are listed on Nasdaq exchange, named ZM originally costing $36. As explained above, the cost of Zoom shares increased by more than 750% in a very short time, thanks to the high buying pressure. Investors who bought shares in Zoom quite early earned a return of more than 16% of their investment.
Why Should You Buy Zoom Shares
In the stocks investing business it is never really late to get the profits. Thanks to the lockdown, day one investors enjoyed a lot of profits but does that make Zoom the right stock to invest in?
Despite the fact that COVID was responsible for the leap in the cost of Zoom shares, buying Zoom shares now is not a bad prospect. Before the corona virus, Zoom was growing rapidly. This means that without the pandemic, Zoom shares would have still increased in cost although progress would have been slower.
The revenue of Zoom also keeps rising every year, beating the forecasts from notable analysts. Businesses are looking to implement remote working systems and colleges are adapting to the change too.
This means that Zoom and other video-conferencing apps will always be valuable if they meet user expectations. Zoom is also working on improving user experience significantly every year, and this is a positive sign that indicates prospective growth.
How to Buy Shares in Zoom
Here are steps to take in order to buy shares in Zoom:
- Research
- Check for a suitable broker
- Create an account and fund it
- Select order types
- Purchase Zoom shares
Purchasing shares in Zoom and other large companies has been made easier over the years thanks to quality brokers.
Within a few minutes or hours, you can become a prospective shareholder with Zoom. You just need to create an account, set it up, fund it and start trading stocks. To buy Zoom shares, you only need a good broker and your funds.
Research
If you are reading this now you probably already researched about Zoom shares and are ready to buy right away. A little more research could help you bag more profit though.
For new investors, you have to do a lot of research before buying any shares. Stock brokers offer learning materials, so starting from that would help greatly. Frankly, if you know nothing about stocks and shares, it may be self destructible to invest lots of money into shares.
Start by following top analysts and reading as much articles as you can about Zoom shares and the trend. Study the factors that could lead to the rise or fall of the share costs. After doing as much study about Zoom shares as you can, study the trend, evaluate the risks and how much you can afford to invest.
Get research materials from your broker so you can spot potential catalysts, use momentum to your advantage and make the right actions.
Check For a Suitable Broker
There are so many brokers and about 20% of them are not the right brokers for you. You can check below to see tips on how to get the best broker for Zoom shares purchase or any other company’s stock.
Because Zoom has a large profile and is one top company, almost all stock brokers offer markets in Zoom.
You can also try a few good brokers using demo accounts until you find the right one. Depending on the broker, your investment can have high risks or be slashed instead.
Create an Account and Fund it
The broker you choose determines a lot, because research varies according to the broker. The best brokers are regulated brokers.
Since they will be in charge of taking good care of your investment, you have to follow the KYC process during registration.
While creating your account, the broker may need your bank verification number. This does not give them access to your account and will only be used to verify information.
Depending on the broker, you can buy shares after completing this process.
Purchase Zoom shares
After getting a quality broker and registering your account, you just need to convert some of your funds into equity and that becomes your holding.
The value will start fluctuating relatively with the market. Especially for short term investors, optimization of entry points is an important factor. Use your learning materials and experience to monitor the market and take actions where necessary.
Best Brokers to Buy Zoom Shares
There is no particular best broker, but there are a couple of brokers that are trusted.
- Interactive brokers
- Fidelity
- Charles Zchwab
- Zacks Trades
- eToro
- Tickmill
- IG
These brokers were selected based on only user reviews. Here are a few tips to select the best brokers to buy shares in Zoom:
The importance of using regulated brokers when buy stocks cannot be overemphasized. In order to get the best brokers, check for only brokers that are regulated by any of the following tier one regulators:
- The US Securities and Exchange Commission (SEC)
- The Financial Conduct Authority (FCA)
- Cyprus Securities and Exchange Commission (CySEC)
- The Australian Securities and Investments Commission (ASIC)
Frequently Asked Questions
Here are frequently asked questions and answers about how to buy shares in Zoom:
Yes. You can buy stocks in Zoom. All you need to do this is a good stock broker and your funds. The prospective profits Zoom stocks can bring are abundant, if you are good at spotting catalysts and using momentu
According to various analysts, Zoom stocks have good prospects despite the fact that the recent pandemic was the catalyst for such fast growth.
Apart from this, the IBD composite rating of Zoom stocks is 34 out of a best possible 99, a very good prospect.
Here are some of the top Zoom stock owners:
- The Vanguard group Inc.
- BlackRock Fund Advisors
- ARK Investment Management LLC
Conclusion
Investors who are new to the game of investing in small tech stocks are advised to use the tips offered here effectively as a part of their learning journey. Getting a mentor would also help greatly so that you do not have to lose money while learning. This article explains how to buy shares in Zoom.
Note that the information on this page is well researched but cannot be a substitute for proper lessons on share purchase and stocks investment.
References
- Finder.com: How to Buy Zoom Video Communication Stock
- Financhill.com: How to Buy Zoom Stock
- Comparebrokers.co: How to Buy Zoom Shares ZM
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