MicroVision, a NASDAQ-listed company, recently announced through their CEO Sumit Sharma that their company is for sale. The said announcement had clear implications for the company’s stock. According to experts, the more the CEO talks about selling their stocks, the less likely its stock will fall, even if they’re overvalued.

MicroVision became well-known because of last year’s stock market correction. To recap, they set a meager stock price at 18 cents. But, they made a massive comeback at $31.14 because of the utilization of their technology in the auto industry. If you’re planning to invest in this company by buying shares, here is a quick guide that will get you through the stock-buying process.

How to Buy Microvision Stock

Experts weigh on the profitability of Microvision’s stocks and concluded that for as long as Red II stays low, an upside extension is more likely to occur. Based on the company’s performance last year, you can say that they took time for momentum to kick in. Since its correction, the company’s stocks have chopped sideways, reaching a higher setting before setting a low in November. After that, the rally took hold.

Within three months, the company’s stocks rallied from 1.52 before it peaked to 24.18. On April 19, they struck a 10.01 low rate. After which, a sharp rally happened and set a new high record at 31.14. However, prices are continuously pulling back from 31.14 — reaching the extreme area that makes a bounce possible.

Step 1: Pick a brokerage.

If you want to be profitable in your stock investments, commission the services of a brokerage that resonates with your learning style, educational needs, and investing goals. This is truer when you’re a new investor. You need to choose an online stock broker that compliments your needs. Otherwise, your goal of finding a new and exciting income stream might just turn into a frustrating disappointment.

While there is no guarantee that you’ll always yield great investment returns, you can still be successful if you choose an online broker or brokerage that understands and caters to your needs. Suppose you’re a novice in the stock market. In that case, it’s better to put a higher premium on such features as opportunities to practice trading, accessible support, comprehensive trading glossaries, and other essential educational resources.

If you already have prior investments and you’re getting serious at it, go for opinion-based and high-level education resources by analysts and professional investors. You can also take advantage of technical and fundamental data.

Step 2: Decide how many shares you want.

While your financial capacity dictates how many shares you should buy, there are also several considerations that you need to take into considerations when determining how many shares to buy.

First, you need to check the stock’s current share price. You can get a quote for this through the trading website or a broker. Just ensure that the quote you’re getting is in real-time as the prices of stocks vary. Afterwhich, divide your available investment money by the current share price indicated in the quote.

If your stockbroker gives a signal for you to purchase fractional shares, go ahead. Take note of the answer you got when you divided your available investment money by the stock’s current share price. That should be the number of shares you should buy. If you can only buy full shares, round up the resulting number to the nearest whole number, and that’s the number of full shares you should buy.

Step 3: Choose your order type.

When you’re placing a trade, also look at the order types offered. A basic trading platform should have, at the very least, a stop, limit, stop limit, and market. On the other hand, a more advanced platform will allow you to do what the basic platform offers while also allowing you to place market-on-close and trailing stop orders.

If you’re interested in few trades and you’re passing on day-or-swing-trading, basic order types would be fine. However, if you want to learn more about stock trading, choose more comprehensive order selections. And if you’re in the advanced trader category, go for platforms that allow you to place various trades with triggers that automatically execute upon the meeting of pre-set conditions.

Step 4: Execute your trade.

The easiest way of executing a trade is through a market order. If you’ve seen various trading platforms, you know that this simply means clicking the ‘sell by market’ or ‘buy by market’ button. So, if you’re ready to execute your trade, look for these buttons and click it.

Microvision Stock History

As mentioned above, Microvision experienced a significant slump last year when their shares are sold at 18 cents. However, they bounced back and reached a huge comeback at $31.14 when their technology was utilized in the auto industry. Since then, they took time to keep their momentum. Experts concluded that for as long as Red II stays low, an upside extension is more likely to occur for Microvision.

Microvision’s Restrictions for Retail Investors

The SEC imposed a new rule that will set an automatic restriction on the bid once a specific condition is triggered. According to such a rule, a short sale order will be prevented if the price of the said sale is equal to, or lower than, the national current best bid. This will happen only if the best bid’s covered security price lowers by 10% or more. The point of reference to determine the 10% or more rate is the covered security’s closing price as indicated in the listing market.

Pros and Cons of Microvision

If you’re not sure whether to pursue Microvision’s stocks, here are some pros and cons you can consider:

Pros:

• The shares of this company jumped by 47% in April, which suggests a substantial interest after their wild ride last year and early this year.
• Their stocks rose by 391% this year.
• The shares for the company still bounce back when it rallied.

Cons:

• Since they reached an all-time low last year at 18 cents, that can still happen in the future.
• When the stock traded at $25.69, the investors lost $277 million on that single day alone.

Takeaway

Trading in the stock market is always a gamble. However, you can always take calculated risks if you perform due diligence in your investments. Due diligence here means that you should study the trade, explore it, read resources that can improve your knowledge, and seek the help of seasoned brokers to help you out. Don’t worry if you still have basic knowledge of the trade. With the right resources and support, and more opportunities to practice, you can succeed in the field. Give yourself time, and soon, making investments would be a breeze.

Frequently Asked Questions (FAQs):

Here are short and candid answers to the most commonly asked questions about the stock market.

Which is better: buy expensive or cheap stocks?

The price of the stocks doesn’t have that much impact. This goes without saying that there’s a negligible difference between having fewer expensive stocks and having more cheaper ones. What matters is the percentage decrease or increase in its share price. This will determine your gain.

What happens to your shares when the company is bought out?

If the said buy-out is made through an all-cash deal, your shares will be taken out of your portfolio after they officially close the deal. Your shares will then be replaced with a cash value in the buyout. If the said buy-out is all-stock, you will get replacement shares from the company initiating the buy-out.

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