Investing in the stock market
might sound intimidating at first, especially when you see that one share of a
famous company like Amazon costs hundreds or even thousands of dollars. For
many people, this price tag feels like a locked door, keeping them out of the
world of investing.
But here’s the good news: you
don’t need thousands of dollars to become an Amazon shareholder. Thanks to
modern technology, you can start with as little as $80 and still own a part of
this global company. The secret lies in something called fractional shares.
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This article will walk you step
by step through the process of buying Amazon stock with only $80, explain the
key ideas in simple language, and show you how anyone—even with a small
budget—can start investing.
1. What Are Fractional Shares?
A fractional share is
simply a slice of a full share. Imagine a large pizza cut into eight slices. If
one slice costs $2, you don’t need to buy the whole pizza for $16—you can just
buy a single slice and still enjoy it.
The stock market works the same
way. If Amazon’s stock is priced at, say, $3,200 for one share, you don’t have
to pay the full amount. Instead, with fractional shares, you can buy just $80
worth of Amazon stock. You’ll own a small piece, and your share of profits or
losses will match the percentage you own.
This is how investing becomes
possible for anyone, even with limited funds.
2. Choosing the Right Investment Platform
To buy Amazon stock in fractional
shares, you’ll need to open an account on an online brokerage platform. Think
of these platforms as apps or websites that give you access to the stock
market.
Some popular platforms that allow
fractional share investing include:
- Robinhood
- eToro
- Webull
- M1 Finance
When choosing a platform,
consider the following:
- Fees and commissions – Many platforms are commission-free, which
means you won’t pay extra each time you buy or sell.
- Fractional share support – Not all platforms offer fractional shares,
so double-check this feature.
- Ease of use – As a beginner, you’ll want a clean, simple interface with
helpful tutorials.
Peter, for example, once wanted
to invest in Amazon but didn’t have thousands of dollars. After some research,
he opened an account with a platform that supported fractional shares. With
just $100, he became a part-owner of Amazon. This shows that small beginnings
can still lead to meaningful investment journeys.
3. Opening a Brokerage Account
Setting up an account is quick
and straightforward. Most platforms let you do it online in a few minutes.
You’ll typically need to provide:
- Your name and address
- A form of identification (like a passport or
driver’s license)
- Your bank details for transferring money
Once your account is open, you’ll
deposit your $80 (or more if you choose) into it. Bank transfers are usually
free, but always check if the platform charges for other deposit methods, like
credit cards.
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4. Researching Amazon Before You Buy
Even though fractional shares
make investing easier, you should still understand what you’re buying. Amazon
isn’t just an online store—it’s a giant in e-commerce, cloud computing (through
Amazon Web Services), streaming, and artificial intelligence.
Investors often see Amazon as a
strong long-term investment because of its size, innovation, and global reach.
However, no company is risk-free. The stock market can rise and fall daily, so
it’s important to be prepared for ups and downs.
5. How to Place a Fractional Share Order
Once your account is funded,
buying Amazon stock is simple. Here’s the usual process:
1.
Log in to your brokerage account.
2.
Search for Amazon or its
ticker symbol AMZN.
3.
Select the option to buy
fractional shares.
4.
Enter the amount you want to
invest (e.g., $80).
The platform will then calculate
what percentage of one share your $80 represents. Congratulations—you now own a
piece of Amazon!
Monitoring Your Investment
After buying, don’t forget to
keep an eye on your investment. Most platforms give you tools to track
performance, see news updates, and analyze trends.
Remember, the stock market moves
daily, sometimes sharply. Short-term ups and downs are normal. Many investors
hold Amazon as a long-term investment, meaning they keep it for years to
benefit from the company’s growth over time.
Dividends and Reinvestment
Some companies reward
shareholders with dividends, which are small cash payments made from profits.
Currently, Amazon does not pay dividends, so your returns will come only from
changes in stock price.
Still, if you later invest in
companies that do pay dividends, you can choose to reinvest them. This means
using the dividend money to buy more fractional shares automatically, helping
your portfolio grow over time.
Why Diversification Matters
While owning Amazon stock is
exciting, it’s not wise to put all your money into a single company. Imagine if
your favorite restaurant suddenly closed down—you’d lose your only option. The
same idea applies to investing.
Diversification means spreading
your money across different companies or industries so that if one investment
struggles, others can balance it out. For example, alongside Amazon, you could
invest in technology, healthcare, or energy companies.
5. Final Thoughts
Buying Amazon stock with just $80
is no longer a dream—it’s a reality. With fractional shares and modern
brokerage platforms, small budgets are no barrier to entry.
Here’s a quick recap:
- Fractional shares let you buy part of a stock.
- Platforms like Robinhood, eToro, Webull, and
M1 Finance make this possible.
- You only need to set up an account, deposit
your money, and place your order.
- While Amazon is a powerful company, remember
to diversify and think long-term.
Even with a modest start, you can
begin building an investment portfolio today. As Peter discovered, taking the
first step is often the hardest—but also the most rewarding.
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