How to Buy Ford (F) Stock
Ford Motor Company is one of the oldest companies available to purchase on the stock market today. Investors have been buying and selling Ford stock since 1956.
From the early onset of the automobile to the development of a loan financing behemoth, Ford has had an extensive history as a publicly-traded company.
But Ford has undergone many changes over the last century, adapting to an always-changing automobile industry.
In this article, we will explain how to buy Ford (F) stock and how to become a Ford investor.
Ford (F) Stock Background
Ford Motor Company was founded in 1903 by Henry Ford. The company is known for the adoption of the assembly line, and one of the first affordable automobiles in the early 1900s in the Model-T.
Ford has been family owned and operated for decades. After Ford went public in 1956, the Ford family still retained 40% of the voting rights of the company.
Today, Ford is one of the largest companies in the world and is 12th on the Fortune 500 list. Ford manufactures the most sold automobile in the world the Ford F-150 pick up truck. In 2018 Ford produced 6 million automobiles worldwide.
2018 Ford Stock Company Data
Those who are interested in buying Ford stock can follow our process that outlines some of the logistics of being a Ford investor.
1.) Research Ford Stock Financials & Company Information
By far the most important first step is to research and do your due diligence into the company you are thinking about buying. Ford stock is no exception. You must be comfortable with tying up your money in Ford stock as an investment.
Now many investors take different approaches to research and investment strategy. Some may believe in passive long term investments, and others may believe in a more active trading strategy.
No matter what your investment strategy is, understanding Ford’s financial situation and company news is vital before you begin investing.
Your investment research strategy is one of the first steps to buying Ford stock.
2.) Decide Where to Buy Ford Stock
The first step is to decide where you would like to purchase Ford stock. Most investors will purchase stock through a brokerage platform where they have access to public stock exchanges.
If you are a relatively new investor, then you may want to consider trying out M1 Finance. It is a completely free investing platform, with no transaction fees or commissions. For those investors who have some experience then we recommend trying out Webull. Webull is also a free stock trading platform where investors can purchase shares of Ford.
M1 Finance – Free stock and ETF platform for beginner investors. Easily create portfolios and try out different pre-built portfolios for free.
Webull – Free stock, ETF, option platform for experienced investors. Webull is a great platform for those who have knowledge about investing and would like to use a variety of advanced trading features.
*Free stock Promotion – Webull offers a free stock promotion if you open and fund an account you can get up to 2 free stocks. Get access to your free stock here.
3.) Decide When and How Much Ford Stock to Buy
Now that you’ve done your research and decided you may want to purchase Ford stock, the next step is to decide on the quantity and time frame.
How much Ford stock you buy depends totally on your investment style. For those looking to buy Ford stock, concentrated positions are high risk. You may want to consider a diversified approach to building an investment portfolio. This way you can reduce your risk to a single company.
Holding too much stock in one company can subject your portfolio performance and risk to that single company.
Another major decision before you buy Ford stock is to figure out your time frame.
Deciding when to buy Ford stock can play a major role in your investment strategy. If Ford stock earnings are approaching, and you believe it will be a weak announcement, you may want to consider holding off your purchase.
For this reason, it is important to understand recent and approaching company news before you dive in and purchase Ford stock.
4.) Execute the Buy Order
Once you have access to a brokerage account, you will typically be able to submit your orders for Ford Stock a few different ways. Two of the main forms of purchasing a stock are limit orders and market orders.
Market Order – When you place a buy or sell of a security at the market price. This is whatever the trading price is for the security at that time. Market orders typically execute and fill at a faster rate than limit orders.
Limit Order – When you place a buy or sell of a security at your own specified price. You can choose your own price that you would like to submit your buy or sell. Once the security reaches that price, your order will fill. It can take slightly longer for a limit order to fill compared to market order.
When comparing market orders vs limit orders, there is not a significant difference. Market orders will fill in a more favorable time frame. But limit orders may not fill right away or even ever if the market price does not hit your order price.
5.) Stay Up to Date on Ford Company News & Data
After you have purchased your Ford stock, the next step is to stay up to date on company information and news. This step is where many investors fail.
Most successful investors will analyze the company’s they hold on a continuous basis. Making sure the company structure, management, financials, and growth stays in line is extremely important.
You should also consider running through scenarios where you would no longer like to be an investor in the company anymore. Whether it is the price of the stock or a changing dynamic within a company, you should always have an exit strategy.
Keeping up to date on the investments within your portfolio can be vital to investment success.
What is your process before you buy Ford stock, leave a comment below!