How to Become a Mastercard Stockholder

Are you looking to cash in on MasterCard stock? Trading stock is much easier than it sounds. Knowing what company you wish to invest in is the most difficult part, so by narrowing your choice down to MasterCard stock previously, now you just need to begin the trading process.

Instructions

1. Determine the current price of the stock. MasterCard stock trades on the New York Stock Exchange (NYSE) under the trading symbol MA. The NYSE website for MasterCard stock can be found in the Resources section. After you know the current price, determine how much you want to invest or how many shares you wish to purchase. If you already have a broker, market information on MasterCard stock is available to you through this firm. Information can also be found online at a variety of brokers. Reuters is also a good source of business information. (See Resources.)

2. Click on MasterCard's website. The investor or shareholder relations section will have all types of information on MasterCard stock. (See Resources.) On this site you can check the latest company news, press releases, upcoming developments and price information. This site also provides information on earnings per share. Earning per share indicates how much money or "dividends" per share MasterCard has paid to stock owners.

3. Decide which type of brokerage firm to wish to use. If you do not already have one, finding a broker at this point is essential. Hiring a broker is necessary in the trading process because it provides the access you will need to the trading markets. A non-licensed individual cannot place trades by himself directly to an exchange trading MasterCard stock. 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. The National Association of Securities Dealers (NASD) is the official licensing agency for brokers. If you have concerns about a broker, check with the NASD to look for any information, complaints or filings against a broker. Additional information about a broker can be found by contacting the NASD at [phone].

4. Create a new trading account at the brokerage you selected. A trading account must be opened to allow you to purchase MasterCard stock. Most of this will consist of filling out paperwork. At this point the brokerage will arrange with you how to transfer money from your bank accounts to the brokerage to pay for your transactions.

5. Place the order for MasterCard stock with your broker. Placing the order also requires some expertise. A broker will provide advice on how to place an order based on if you want to buy at a specific price, the current market price and if you want to set a level to sell if the price drops.
   Market orders are place if a client just wants to purchase MasterCard stock at the current market price. If a client wants to purchase MasterCard stock at a specific price she must notify the broker of this intention. The broker will then put in a limit order that "limits" the price of purchasing MasterCard stock to meet a client's price specifications.
   If the price set by a client is $45 a share and the price of MasterCard stock never drops to $45 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 MasterCard stock as a day order or good till canceled. A day order will have the MasterCard trading information in for only a day, then the order will be canceled. So if you place a day order for $45 and the order is never filled, you will have to place another order the next day if you still wish to purchase this stock.
   A good till canceled order will leave the MasterCard trading order at $45 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 in the market to direct a broker as to when to sell your MasterCard stock.

6. Receive trade information confirming that you have purchased MasterCard stock. This confirmation will include how many shares you own, the price you paid and your commission charge.

Tips & Warnings

• Discuss with your broker any concerns you may have if the stock begins to lose value. For example, say you purchased MasterCard 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 MasterCard stock drops to this price, it will automatically be sold. 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 the portfolios. This type of broker earns commissions as a percentage of stocks purchased. This type of broker may not be necessary if you are interested only in purchasing MasterCard stocks. But if a client is looking to establish a working relationship with a new broker by beginning to trade MasterCard 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 MasterCard stocks now but may also want to trade more companies down the line. Online brokers are the least expensive option, but they provide only 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.

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

Resources

• How to trade stock
• Reuters MasterCard stock information
• New York Stock Exchange Mastercard stock information
• MasterCard investor relations