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HOW TO BUY ALIBABA STOCK

Updated on June 16, 2014

The Alibaba IPO

Alibaba is a Chinese e-commerce company that is going to go public in July or August of 2014. It is a huge company, the likes of which we haven't seen in the United States. As the IPO grows closer, more reports are saying that this could potentially be the largest initial public offering EVER!

No ticker symbol has yet been announced and the company still hasn't decided whether to be listed on the NASDAQ exchange or NYSE. Both exchanges are heavily wooing Alibaba as this IPO is going to be a moneymaking for everyone involved.

Latest Alibaba Stock News

The latest rumor is that Alibaba will have its IPO sometime in the first half of August 2014. However, as the exchange to be listed on has not been decided, it may actually happen later than that. On 6/16/2014 Alibaba submitted revised paperwork for its upcoming IPO which listed 27 officers and directors of the company along with earnings for the first quarter of 2014. However, no decision has been made yet about what exchange the company will be listed on or what their ticker symbol will be.

On 6/11/2014 it was announced that Alibaba Group Holding is going to purchase UCWeb which is a Chinese mobile browser company. This is reportedly one of the largest mergers ever in China and shows that Alibaba recognizes that mobile Internet traffic is skyrocketing and the importance of monetizing it. Right now, a majority of Alibaba's business comes from desktop computers but in future years much of that potential business may switch to mobile.

Are You Going To Buy Alibaba Stock When It Becomes Available?

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What You Need To Buy Alibaba Stock

In order to buy any stock, including Alibaba, you need to open an online discount stock account. After opening your account, you will need to put money in the account and that is the money you will use to buy Alibaba stock.

Opening an online broker account isn't hard and should be much like other accounts you probably have opened online. You will need to enter your real name, real address, real phone number, as well as your Social Security number. The SSN is needed because the IRS wants to track your buying and selling activity so that they can make sure you pay your taxes.

There are many discount brokers to choose from and most charge between $5 and $10 per stock trade. That means, every time you buy or sell a stock, you will be paying a commission to the broker and that is how they make their money. You pay the same commission no matter how many shares you buy and what the purchase amount is.

Some popular online brokers include:

E*Trade

TD Ameritrade

Scottrade

Schwab

TradeKing

OptionsHouse

Any of those brokers will be a good starting point for your first stock purchase of Alibaba. They all have a long history and are reputable so you don't have to worry about your money getting stolen, lost, or disappearing from your account.

I've Opened My Account, Now What?

Once you have opened a stock broker account (see list of brokers above) and put money into your account, you will be able to buy any stock that is listed on the NASDAQ or NYSE as well as a few other exchanges. Most companies you will ever want to invest in are listed on those exchanges.

Alibaba stock will be listed under a ticker symbol (yet to be determined) and with a few button pushes on your PC, you will be able to buy the number of shares you want. It is extremely easy to buy and sell stock online and it can all be done right from your home or anywhere you have an Internet connection. The shares you buy will be listed in your broker account and you can log in any time to see what they are worth. When it comes time to sell, you will sell your shares the same way you bought them - with a simple click or two of your computer mouse.

Buying stocks now days is all done electronically by computers which makes it very easy for individual investors like you an me to invest in stocks. There is no one to call (unless you need to ask your broker a question) and you can place an order 24 hours a day. Only during the hours the market is open though, will your order(s) actually be filled.

Is Alibaba A Good First Stock To Own?

There is no way to answer that question even though many first time investors may be thinking about making Alibaba their first stock purchase. One important thing is to understand that whenever you buy a stock, you can lose money. Nothing is guaranteed like it is when you put your money in a bank savings account.

Stocks go up and down based on the companies performance and investor's perception of that performance. In the end, stocks go up and down based on supply and demand: if their are more people buying a particular stock the price will go down and vice versa.

Alibaba is China's premier e-commerce outlet and as more and more Chinese gain wealth and access to the Internet, the company will most likely continue to grow. The key is though, whether they can make money and continue to increase their profits. All investors care about are profits and the future outlook for profits. So, while Alibaba is already an juggernaut in Chinese retail, the stock performance will depend on how well the company manages its growth and turns those increasing sales into profits.

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