IBM (IBM) - All you need to know
Ways to invest in IBM
Buying shares of IBM with an online stockbroker is the simplest way to invest. A broker is a service that lets you trade stocks almost instantly, with low transaction fees. Many are now available in trading app form too, so you can manage your portfolio on the go.
In addition, there are plenty of ways to invest aside from owning shares outright, such as investing in an exchange-traded fund (ETF) that holds IBM shares, using a mutual fund, or CFDs. We have provided links for each method below to help expand your knowledge.
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What is IBM?
IBM (International Business Machines Corporation) is one of the world’s largest and oldest technology companies. Founded in 1911, the company experienced its most rapid growth by selling personal computers during the boom times of the 1980s. Today, IBM is a leader in artificial intelligence, blockchain, and other exponential technologies. IBM employs more than 350,000 workers around the world. The company reported $77.1 billion in revenue last year.
Before investing in IBM, you may need to gain a more basic understanding of the stock market and the dynamics that affect it. If this is the case, make sure you check out our extensive stock market course for helpful pointers.
How to invest in IBM
Below, we have compiled an assortment of methods you can use when investing in IBM. Feel free to click the links in each section for extra information.
- IBM stock brokers. The easiest way to invest in IBM stock is to buy shares through an online broker. Simply sign up, verify your account and fund it with fiat money. Then, have the choice of trading stocks, forex, and even cryptocurrencies. On a positive note, in recent years, trading fees have reduced substantially, so there has rarely been a better time to get started.
- IBM mutual funds. A mutual fund is a professionally managed, collective investment strategy in which your money gets pooled with other investors’ capital. A mutual fund manager takes that money and uses it to get numerous different stocks at once, forming a widely diversified portfolio that mitigates risk. If you don’t want to control every detail of your investment or conduct all of your own analysis, mutual funds can be good options.
- IBM ETFs. ETFs are groups of multiple stocks and assets that trade like regular single stocks. The stocks and assets that comprise an ETF generally fall in a related field. So, for IMB, investors buy into technology ETFs. This helps limit risk because all of your eggs are not in a single basket because investments are spread out.
- IBM CFDs. A CFD (contract for difference) is an agreement in which the buyer pays the seller the difference between the current value of an asset and the asset’s value on the date specified in the contract. Perhaps the most attractive thing about this approach is that you don’t need to directly own IMB shares to benefit from share price accretion, and it can often work out to be cheaper than owning a stock outright. In addition, you can use leverage with CFDs, increasing your exposure to the potential upside and downside in equal measure.
- IBM trusts. These are pooled and close-end investments that have risen to particular prominence in the UK. They trade on a stock exchange, and investors benefit by owning IBM shares through the trust, and this can attract additional investors over time.
- IBM ISAs. An ISA (Individual Savings Account) is a tax-free savings account for individuals residing in the UK. It allows you to dedicate up to £20,000 of your annual income in any given tax year towards investments. You benefit from the tax-free savings, and you benefit from the accretion of any stocks or assets within your ISA.
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