How to Buy Stock in Windmills

Investing in windmills can be a smart move.

If you feel that green energy is the wave of the future, there are a number of ways to invest in this new technology. Investing in wind power and other forms of green technology can be a smart move, but it is important to research those investments carefully. There are a number of ways to invest in windmills and wind power, from buying stock in mainstream energy companies to choosing an ETF that invests strictly in wind power.

Instructions

Researching Your Investment

1. Research mainstream energy companies to determine which ones are making a significant investment in windmills, wind farms and related technology. A number of mainstream energy producers have been investing heavily in green technology, including windmills. The Wall Street Journal, Barron's Weekly and financial newspapers are good sources of information.

2. Consider investing in an exchange traded fund that invests in wind power and windmills. One of the most popular ETFs in the green energy arena trades under the ticker symbol PWND, and it can be bought and sold throughout the trading day like any other stock. Like a mutual fund, an exchange traded fund purchases a number of different stocks, thus spreading the risk of stock market investment.

3. Contact a number of mutual fund companies for information about green energy and wind power mutual funds. These mutual funds can also be a good way to invest in the future of wind power. It is a good idea to contact several different companies--this will give you a chance to compare investment costs and expense ratios. Popular financial magazines will run ads from many mutual fund companies, so be sure to check out these publications on a regular basis.

4. 

   Use screening tools to find the best stocks.

Making Your Purchase

1. Open an account with a mutual fund company or stock brokerage firm. Look for a low cost provider--this will allow you to keep more of your money. By shopping around, you can find a broker that charges less than $10 per trade, or a mutual fund company whose expense ratios are well under 1 percent. In some cases, you will be able to open the account online--with others you will need to submit the application by mail. Be sure to complete the entire application to avoid delays, and mail your initial deposit with the finished application.

2. Use the stock screening tools on the broker's website to find companies in the windmill and wind power business. These stock screening tools allow investors to screen stocks according to a number of different criteria, including their size and the industry they are in.

3. Place your buy order with the brokerage firm or mutual fund company. When making your purchase, be sure that the funds you have deposited have cleared by checking the cash you have available for trading. Check back to make sure your purchase has gone through, then continue to monitor your investment.

References

• Seeking Alpha: PWND ETF