How to Buy Starbucks Stock

Starbucks Logo

For those interested in investing in stocks, Starbucks has become one of those brands that everybody knows. If you say "Starbucks", people think "coffee". Strong brand names are oftentimes a good indicator of a company's ability to compete in the marketplace. Investing in Starbucks stocks is not unlike investing in any other corporate entity, but there are a couple things you'll want to keep in mind when it comes time to purchase a piece of the Starbucks corporation.

Things You'll Need

• A stockbroker
• An investment account
• A budget

Instructions

Steps to a Starbucks Purchase

1. 

   Research the Starbucks Listing This can be found online, and provides a complete profile on the Starbucks corporation. This page also shows the current market share price for Starbucks stock. Starbucks is listed on the NASDAQ Index. It's trading symbol is SBUX.

2. 

   Decide on a Spending LimitIt's always a good idea to invest with a specific goal in mind. Are you in for the long haul? Will this be part of your retirement nest egg? College fund for the kids? Down payment for a dream home?Knowing your goal can help in determining how much to invest as well as how long (and hard) your money will need to work in the allotted time frame.

3. 

   Choose a StockbrokerSince Starbucks does not offer a direct purchase plan, you'll need to go through a brokerage firm in order to buy stock in Starbucks. There are three types of brokers to choose from, each providing a different level of service and assistance in managing your investment.Full-service stockbrokers work for a brokerage firm. They handle everything from the paperwork trail to the actual buying, selling and trading of your shares. Full service brokers are advisers as well; meaning, they can provide their expertise in helping you with investment decisions. In exchange for these services, full service stockbrokers charge commissions and fees for every transaction made on your account.Discount brokers generally work for discount brokerage firms. This is no doubt the cheapest way to go, as their commission and fee structures are substantially lower than the full service firms. Just keep in mind that all investment decisions will be yours. Discount brokers provide little, if any advisory services.Investment counselors are more so for you big spenders; anyone with $250,000 or more to invest. They typically manage your entire investment portfolio, so Starbucks shares could be a mere piece of the pie, or it could be the whole portfolio. The choice is yours.(See resource listing for available online brokerage services.)

4. 

   Decide on How to List Your StockOnce you buy stock, you have the choice of how it will be listed. How the stock is listed determines who holds actual ownership.Listing the stock in your own name means the stock certificate will be sent to you, and will list you as the owner.Listing the stock in the brokerage firm's name (also known as "held in street name") means less paperwork to keep track of since the broker will be handling your investment statements, and the storage and processing of your stock certificates. Listing your stock in the broker's name also allows for the instant buying, selling and trading of shares.

5. 

   Track Your Investment - AlwaysAs the saying goes, "knowledge is power". Knowing how your investment is performing, and staying abreast of Starbucks developments and growth in the marketplace will provide needed information in determining how "invested" you want or need to be.

Tips & Warnings

• Make sure to figure in the cost of commissions and fees when determining how much you want to invest.

• Decide what type of shareholder status you want to hold. Starbucks offers two types of shareholder options: Registered and Beneficial. Registered shareholders hold stock in their own names. Beneficial holders are listed in the broker's name.

• The mores shares you buy at a time, the less you'll end up paying per share in commissions and fees.

• Don't do anything without doing your research.

• If this is your first time investing in stocks, going with a full-service brokerage firm may help keep you from making a wrong investment decision.

• Don't use monies needed for living expenses when deciding how much you want to invest.

Resources

• Starbucks Corporate Page
• NASDAQ Listing
• Online Broker Listings