How To Buy GE Stock
If you are looking to buy some shares of the conglomerate General Electric, here’s how you do it!
Most people have no idea what GE (General Electric) is anymore. Many years ago, they were known for small kitchen appliances and light bulbs. Fast forward to today, and General Electric is a totally different company.
GE is no longer involved in the lighting business, as they sold that business off to a private equity firm in 2018. They also exited the appliances business to Haier back in 2016. Now, what we have left, is a number of business segments operating under one roof. At this new stage, investors may consider GE as a potential investment.
In this article, we explain how to become an investor in GE (General Electric) stock.
General Electric (GE) Stock Background
The purpose of General Electric (GE) has always been a shared research environment, but in recent years GE ended up in some hot water. They had spread themselves across too many businesses, and this led to trouble.
General Electric stock went from $30 a share in early 2017 to a low of $6.66 in late 2018. During this time, they were also kicked off the Dow Jones Industrial Average, as they were no longer a shining example of success.
At one point in time, GE was the world’s most valuable company, and it was considered to be one of the best stocks you could own. In 2018, the future for GE was very uncertain.
Fast forward to today and General Electric stock has begun to see a bit of a rally, climbing back to the $10 to $12 per share range. They are under the new CEO Larry Culp, who has a track record of success coming from another industrial conglomerate known as Danaher.
One thing is certain, it’s going to take a while for GE to turn around. It’s a lot easier to change direction in a sailboat versus the titanic.
Why Buy GE Stock?
Those who are buying General Electric stock now are betting that this company will stay afloat and get back on track. It is highly unlikely that a company the size of GE would go under, and they have weathered many storms in the past. The future was also very uncertain for GE back in 2008, when losses in GE Capital put the entire company in jeopardy.
The general consensus among people owning this stock now is that as recently as 2017, GE was trading at $30 a share. If GE is able to get back on track, they may be able to return to that valuation.
1. Decide Where to Buy GE Stock
The first thing you have to figure out is where you are going to buy your shares of GE. Most investors will need to purchase your shares through a brokerage account.
At Investing Simple, we always recommend commission-free and fee-free brokerages. Here’s our guide on the best free brokerages available today.
Our number one pick is a 100% free brokerage called Webull. They offer zero commission trading and no fees whatsoever. This is a great place to purchase your GE shares.
On top of that, they have an exclusive offer for Investing Simple readers. If you use our link when you sign up, you will get two stocks completely free!
- After you open the account, you will get a free stock worth up to $250
- Then, when you fund the account, you will get another free stock worth up to $1,000
If you do the math, that is two completely free stocks worth up to $1,250!
Webull is a great trading platform for modern-day investors, and they have an array of helpful tools and features. One of our favorites is the trading simulator. This allows you to place trades with play money to practice investing before you risk your own money.
2. Research the Investment
One of the core investing principles is that you should only invest in businesses you understand. Before diving in, make sure you do some research on General Electric and have a good understanding of this company.
A good way to test this out is the elevator pitch. You should be able to give a friend or a family member a 30-second elevator pitch about the company, and clearly describe what it is that they do. If you are unable to do this, you may want to consider doing some more research.
A great place to start is GE Investor Relations. This will have all of the important company releases, including earnings reports, annual reports, and press releases. You should comb through the annual report and the most recent quarterly earnings report.
3. Figure Out When you Want to Purchase
After you have done your research, the next step is to decide when to purchase GE stock. Some people try to wait for a pullback in the share price to buy at the optimal time.
If you want to buy General Electric stock right away, you will place a market order through your brokerage. Your order to buy shares will be filled at the best available price.
If you have a set price in your mind that you are looking to buy at, you can use a limit order. Let’s say the stock is trading at $12 a share, but you believe it will go back down to $10. You could place a limit order to purchase these shares at a price of $10 or better. However, keep in mind if the share price does not hit $10 or lower, your order will not be filled.
4. Decide How Many Shares of GE to Buy
How many shares of GE stock you buy is totally up to you. A general rule of thumb to follow is don’t put all your eggs in one basket. You want to be diversified across many different stocks and assets, that way if one of the investments turns sour, it doesn’t have a huge effect on your net worth.
You can also choose to buy shares over time, following a strategy called dollar-cost averaging. By doing this, you end up paying the market average price for those shares. You don’t have to buy all of your shares immediately!
5. Execute the Buy Order
When the time is right, you can execute your order to buy GE stock. You have a few different types of orders you could place to buy GE stock, two of the most common are market orders and limit orders.
If you end up using a market order, your purchase will be completed in a matter of seconds. Market orders are placed to buy or sell a security at whatever the current market price is. This order type is used to make immediate buys or sells as the market order typically fills right away.
If you use a limit order, that order will be open until it is filled or manually or automatically canceled. Limit orders are buys or sells of a security at an exact price. When you place a limit order you must decide which price you would like to buy or sell.
6. Stay Updated on GE Company News
After you purchase your shares, you will want to stay updated on your investment. You should pay attention to major company news, earnings reports and any changes going on in management.
This way you stay connected to your investment and can make smart investing decisions if the company outlook has changed. With a company like GE, it is even more important to keep track of company updates as GE goes through major structural changes over the next few years.
If you want to learn more about investing in stocks, check out our beginner’s guide to investing in the stock market!