Buy General Motors shares in New Zealand
General Motors is the largest American automobile corporation and for 77 years prior to 2008 was the world's largest car manufacturer. In 2014, it was the world's third-largest automaker by sales (9.92 million units). It has production in 35 countries and sales in 192 countries. The company is headquartered in Detroit. At certain stages of its existence the company was one of the 20 largest contractors of the U.S. military-industrial complex. About one-fifth of its revenues from sales of products and services constitutes the federal military orders servicing sector (not including foreign customers of the U.S. armament and military equipment).
At the moment, General Motors owns the following car brands: Buick, Cadillac, Chevrolet and GMC. Previously it also produced: Holden, Oldsmobile, Pontiac, Hummer, Saturn, Asüna, Acadian, Alpheon and Geo.
The main trading venue for this issuer is the New York Stock Exchange. Investors were able to trade the securities of an American corporation in November 2010. On the NYSE, they can be found under the ticker GM.
General Motors shares are also traded on other exchanges. In particular, they can be traded on: Hamburg, Frankfurt, Berlin, Munich, Hanover, London and other European stock exchanges.
To buy General Motors shares, you need to find a broker who cooperates with the above-mentioned stock exchanges, because the stock exchanges do not work directly with clients; there are special intermediary companies for this purpose.
Below we will analyse the options for investing in General Motors shares in New Zealand.
How to invest in General Motors shares in New Zealand?
With the development of digital technology, investments have taken a new form: online investments using online trading platforms are now the most popular. So while the average person in New Zealand would never dream of trading on a stock exchange, and such transactions seemed to be an advantage for extremely powerful people, this has now changed dramatically.
To start investing online, all you need is internet access and a willingness to learn.
General Motors shares are performing very well, typical of production cars. This suggests that investors can enjoy not only the speed of the car brand, but also the benefits of trading in its shares.
As mentioned above, you first need to find a broker who deals in General Motors stock. Search the internet for information and find suitable brokerage firms. A good brokerage firm should first of all be licensed by the relevant regulatory authorities for this type of business. Next, analyze that broker, read expert reviews about it, see what services it can provide you and how much commission you will have to pay for its brokerage activities.
When choosing a broker, also consider whether it will be convenient for you to make deposits, whether the platform accepts local currency (if that is important to you), as well as what withdrawal options are available if you complete a transaction successfully.
Once you have chosen a broker, you will need to register on their online platform in order to be able to buy shares. But more on that later. Now let's take a closer look at the investment options.
Buying shares involves long-term investment and low returns, whereas short-term purchases with other stock market instruments allow you to make a lot more money.
General Motors pays a quarterly dividend of 4.5-5% per annum.
By investing using the dividend method, you actually get a passive income option, as this method of investing does not involve you constantly monitoring share prices. Of course, at the stage of buying shares any sensible investor studies the company's financial situation, asset prices, the latest news and company trends. But when you decide to invest in a company with the aim of earning dividend income, you are accepting the terms of the interest payment on the company's profits, counting on the long term. The amount of the dividend payment depends on the company's internal policy and is approved by the general meeting of shareholders. The dividend method of investing is popular with large investors.
If your objective is to make a profit in a shorter term and the size of your investment is small, you are likely to be more comfortable with derivatives trading.
The Contract for Difference (CFD) is a popular type of derivative which allows you to trade on margin, giving you more options in the financial markets. A CFD is a type of derivative financial instrument where you do not buy the underlying asset.
Instead, you buy or sell units of that financial instrument depending on whether you think that the underlying price is going to rise or fall. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security between the beginning and the end of the contract.
Simply put, you trade the difference in value of a stock between the opening and closing of the trade. In other words, you must be able to predict whether the share price will rise or fall. You will only make a profit if your predictions are correct. As a rule of thumb, you can use the "multiplier" option when using this trading method. With a multiplier you can multiply your investment by several times, but you should not forget about possible risks.
How to buy General Motors shares in New Zealand?
Fortunately, New Zealand has enough brokers offering their services online. Once you have chosen a broker, register on an online investment platform. Registering on such a platform is usually not much more complicated than registering on any social networking site you use to communicate with your friends.
Next you may need to enter your email address in order to respond to the notification confirming your account registration. You will then need to proceed to fill in the personal information requested by the site.
After you register you will be given access to a demo account, which you can use to test how the system works (the funds in the demo account are fictitious, so you will not have to worry about negative results).
Just as with the real version, you can use the demo account for any transactions on the platform. So when using a demo account you will have the opportunity to test how to buy a stock, how to sell it later, how to use the stop loss or multiplier feature and so on.
When you choose a real account, you are operating with real money, and you will have to make a deposit.
Click on the "Deposit" option to use one of the payment systems available on the platform to fund your account. The minimum deposit amount is usually no more than USD 10, while the minimum investment amount is usually even lower at USD 1.
How to start investing in General Motors in New Zealand?
To summarise all of the above, there are a few key points to follow in order to start investing:
- Choose an online broker that deals with General Motors shares;
- Register with an online trading platform;
- Test the trading platform with a free demo account;
- Use the "Indicators" tab to learn how to use the technical analysis tools;
- Use the "News" tab to keep up with the latest stock market news.
Trading is quite a complex process. Learning how the stock market works is not enough to invest efficiently, making profits rather than losses. It is worth remembering that the value of a company's shares may be affected by external factors that need to be taken into account when investing, such as the political situation of the country, its foreign economic relations and economic legislation, the global economic situation and global political trends. Analyse what products and services the company whose shares you want to invest in produces and whether they intend to expand or close their operations. Follow news about the company, using only reliable sources of information.
When it comes to investing in General Motors, it is a very promising decision. As of the date of writing, a GM share is worth $60.14, showing a 155.86% year-over-year increase. Analysts are predicting a further rise in the car maker's share price.
The company is actively developing by introducing new technologies. Most recently, General Motors announced its intention to phase out petrol and diesel-powered passenger cars and sports cars by 2035 in favour of electric cars.
The company also said it will provide 100 per cent renewable energy to power its US operations and global facilities by 2030. This is five years ahead of the company's previously announced plans.
General Motors remains one of the world's leaders in the automotive industry, demonstrating forward-looking plans and development.
Therefore, investing in General Motors stock is a good option. In any case, keep an eye on the company's news and be aware of any changes.
Only personal experience will help you develop the best investment strategy and achieve good trading results. The possibility to start trading with minimum deposit, a good theoretical base, video lessons, demo accounts and other advantages of online trading are good reasons to try yourself as a trader today.