Microsoft (MSFT) - All you need to know
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Ways to invest in Microsoft
Perhaps the simplest way to get started is by purchasing shares via an online stockbroker. This is a service that enables you to trade stocks almost instantly, with low transaction fees.
There are plenty of other ways to get involved too. For example, you could invest in an ISA or mutual fund that holds Microsoft shares.
What is Microsoft?
Microsoft is one of the world’s largest technology companies. Its breakthrough came in the 1980s and 1990s, as Microsoft became the dominant provider of operating systems and other software for personal computers. The company has expanded into other ventures since then through a series of acquisitions, in the process growing into a behemoth with a market capitalisation of about $1.6 trillion and annual revenue of $143 billion.
If you require preliminary information about the stock market before investing in Microsoft, check out our introductory guide to the stock market. If you feel ready to make an investment, keep reading this page for more guidance.
How to invest in Microsoft
We’ve provided a list of the different investment approaches you can take below. Follow the links to our guides on each investing method for more in-depth information.
- Microsoft stock brokers. Buying Microsoft shares through an online broker is a fast and easy way to invest, and fees are generally low. Trading with a broker typically takes a minute or less, and can also be done through an app.
- Microsoft mutual funds. A mutual fund is an investment strategy that pools your money along with other investors’ capital. An investment expert known as a mutual fund manager then uses that money to buy numerous different stocks at once, building a diversified portfolio. A Microsoft mutual fund is a great way to own an interest in that stock while limiting your overall risk.
- Microsoft ETFs. An ETF allows you to hold shares of many different stocks at once, often grouped with peers from a specific industry or sector (in the case of Microsoft, a technology or software ETF). As with a mutual fund, investing in an ETF allows you to limit risk by diversifying your investment portfolio.
- Microsoft CFDs. A CFD (contract for difference) is an agreement between a buyer and a seller 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. A CFD lets you benefit when the price of Microsoft shares goes up or down (depending on the direction of the stock you’re betting on), without requiring you to own physical shares. A CFD also allows you to trade with leverage, which is when you effectively borrow money from a broker to try to increase the size of your gains.
- Microsoft trusts. An investment trust is a pooled and closed-end investment method that is especially common in the UK. Investors can trade a trust on a stock exchange, just as they would any publicly traded company, making it a convenient method. A Microsoft trust lets you benefit from gains in the software giant’s stock price by owning shares within the trust.
- Microsoft ISAs. An ISA (Individual Savings Account) is a tax-free savings account for UK residents that lets you set aside part of your income for investments. The limit for ISA contributions in the current tax year is £20,000. An ISA allows you to save money on your taxes and also benefit when Microsoft shares go up in price.
Where can I buy Microsoft shares now?
Latest Microsoft price analysis
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