How to Buy Walmart Stocks

Wall Street

Are you itching to jump into the market and buy a specific stock? Do you have a gut feeling where your money should be? Trading stock is not as difficult as it sounds. You have already selected the product you wish to buy---Walmart stock. This is probably the most difficult decision you will need to make. Now the only question remaining is where to begin.

Difficulty:

Moderately Easy

Instructions

1. Decide what stock you want to trade. Look at the current price of the stock. Determine how much you want to invest or how many shares you wish to purchase. Market information on stocks, such as Walmart, can be found online at a variety of brokers. Reuters is also a good source of business information. The stock symbol for Walmart, which trades on the New York Stock Exchange, is "WMT."

2. Go to Walmart's investor corporate relations department web site (see Resources). Here you can check the latest company news, press releases, upcoming developments and price information. It will also provide information on earnings per share. Earning per share indicates how much money or "dividends" per share Walmart has paid to stock owners.

3. Decide on what type of brokerage firm to use. Looking for a broker is essential. Brokers are necessary because they provide access to the trading markets. A nonlicensed individual cannot place trades by himself directly to an exchange trading Walmart stocks. To gain entry to the stock market and purchase a stock, you must use a person licensed to trade and provide assistance in the markets. All brokers must be federally licensed by the National Association of Securities Dealers (NASD). Additional information about a broker can be found by contacting the NASD at [phone]. The NASD will maintain information, complaints or filings against a broker.

4. Open a trading account at the brokerage you selected. This will consist of filling out the required paperwork. You will also arrange how to transfer money from your banking accounts to pay for stock.

5. Ask the broker what type of commission she typically charges. Understand if the charge changes based on how much stock you buy and sell in a "block." A block indicates the number of shares for the same stock that you purchase at one time. Discuss what charges you will have in buying and selling the stock. There typically is a commission charge to purchase a stock and another charge when you want to sell a stock.

6. Place the order for stock with your broker. Placing the order also requires some expertise. A broker can provide advice on how to place a trade. If a client just wants to purchase Walmart stock at the current price, the broker will put in a market order. If a client wants to purchase Walmart stock at a specific price they must notify the broker of this intention. The broker will then put in a limit order that "limits" the price of purchasing Walmart stock to meet a client's price specifications. If the price set by a client is $35 a share and the price of Walmart stock never drops to $35 that day, the order will not be executed and the client will not own this stock. The good news is that instructions can be left with the broker to leave the "limit order" for Walmart stock as a day order or good till canceled. A day order will only have the Walmart trading information in for a day, then the order for will be canceled. A good till canceled order will have the Walmart trading information open until the client chooses to cancel it or the order is executed at the price set by the customer. Similar types of price directions can be placed by a client regarding when to sell Walmart stock.

7. Receive confirmation that you own Walmart stock. This confirmation will include how many shares you own, the price you paid and your commission charge.

Tips & Warnings

• Full-service brokers are the most expensive because they provide the highest level of service. Full-service brokers will contact their customers with stock ideas, monitor client portfolios closely and recommend changes to client portfolios. This type of broker earns commissions as a percentage of Walmart stocks purchased. This type of broker may not be necessary if you are only interested in purchasing Walmart stocks. But if the client is looking to establish a working relationship with a new broker by beginning to trade Walmart stocks, this type of broker is a good choice. Discount brokers charge mid-level commission rates for trades. For trades under 1,000 shares, the rate will range from $10 to $20 per trade. Rates for discount brokers are at least half as much as full-service brokers. Discount brokers can provide research on a stock, but not as much as a full-service broker. Discount brokers typically do not contact clients or monitor portfolios as closely as full-service brokers. However, these brokers do not charge as high of a commission rate. This type of broker is a good option if a client is interested in trading Walmart stocks, but may also want to trade more companies down the line. Online brokers are the least expensive option, but they only provide market access. Most online brokers simply enter trades for the stocks a client wishes to trade. Online brokers often have a research site where clients can look up information on particular stocks, current price and historical charts. These brokers will charge $9 to $15 per trade. Discuss with your broker any concerns you may have if the stock begins to lose value. Once you own the Walmart stock, specific instructions can be left on your order on when you want to sell the stock. You can set limits above and below the price at which you bought your Walmart stock. For example, say you purchased Walmart stock at $43 per share. You can place an order to sell your stock at $60 per share. When the stock rises to that price, it will be sold, a commission charge will be removed from your transaction and the funds will be deposited into your account. The same is true for if the stock loses value. For example, a sell order can be placed at $30 per share. If the price of Walmart stock drops to this price, it will automatically be sold.

• Understand all of the risks of trading stocks before you begin trading. Only risk what you can afford to lose. There is never any guarantee that a stock will increase in value.

Resources

• Stock Trading Information
• Walmart Investor Relations