Google is more than a search engine. Its parent company, Alphabet, Inc. As part of, Google is one of the world’s largest technology companies, complete with cloud computing, software and more.
Its stock price has increased with its rapid growth. For the same period a year after the beginning of January 2021, GOOGL’s stock price increased by more than 50%, and in the third quarter of 2021, the company reported a 41% increase in year-over-year earnings.
If you’re wondering how to unleash some growth in your portfolio, here’s everything you need to know to buy Google stock.
How to buy Google stock
1. GOOG vs GOOGL: What’s the difference?
Before you go too far into buying Google stock, you must first decide what kind of Google stock you want to buy. That’s right. Google’s shares — or its parent company, Alphabet, Inc. — come in two main flavors: GOOGL and GOOG.
The difference between them is whether the shares have voting rights. GOOGL is called Class A common stock, which gives its shareholders the ability to vote on company matters. GOOG, meanwhile, is a C class stock and does not come with voting rights. Both classes benefit from appreciation in value, just like any other stock.
(There is also Class B of Google Stock, which has supercharged voting powers — 10 votes for every Class A shareholder. It is retained almost exclusively by Google’s founders Larry Page and Sergey Brin and former CEO Eric Smith. )
As you might suspect, its additional voting rights can trade at a slightly higher premium than GOOGL GOOG. However, since their split in 2014, their prices have been very similar, and perhaps more importantly, the percentage increase in the value of shares has been almost the same. This means that you ultimately decide whether or not you want to have a figurative voice in Google’s move.
2. Select the brokerage
If you don’t already have an investment account, you need to open one in the brokerage or with the investment app. To speed up your research, check out our list of the best online brokers and best investment apps to find quality options with minimal investment fees and fees.
In addition to selecting the right brokerage for your needs, consider the type of account you want. Do you invest for your golden years? Put your Google stock in a Registered Retirement Savings Plan (RRSP) and you won’t have to pay taxes on your investment growth until you take income. Build wealth for proximity goals? Choose a taxable brokerage account instead.
3. Determine the initial investment
Since you cannot get a full share of GOOG or GOOGL, you need to decide how much (and how) you want to invest, not right away. Ask yourself these questions to figure out your ideal initial investment.
- What is your budget? If you don’t have enough to cover your expenses and save for retirement and emergencies, you may want to stop buying Google stock. Once you control these, you can invest any remaining money in Google Shares.
- How much is Google worth? GOOGL and GOOG both trade in the thousands of dollars per share, trading at around $ 3,500 ($ 2,700 USD) at the beginning of January 2022. Fortunately, two brokers in Canada, WealthSimple and Interactive Brokers, allow you to buy partial shares in the offering. You are part of owning personal stock.
- What is your investment strategy? You can choose to invest a lot of money at once or build ownership slowly with small, regular purchases. The latter technique, known as dollar cost averaging, can help you pay less per share on average over time. But more importantly, it allows you to enter the market as quickly as possible. Remember: time in the market is more powerful than market time.
- What other investments do you have? As an investor, you are building or building what is known as a portfolio. This means that your Google investment will complement other companies’ holdings, such as shares or certain bonds or funds. Think about how Google (and according to Google Company) fits into your overall investment landscape.
4. Check the performance of Google
Before you buy your GOOG or GOOGL stock, you want to research the company’s finances to get a sense of its performance, risks, competitors and future plans.
As a publicly traded company, Google submits quarterly and annual filings known as Form 10-K and Form 10-Q to the US Securities and Exchange Commission (SEC), respectively. You can check those documents on Google’s investor relations site or by searching the SEC’s database.
To help you navigate this information, you can turn to expert analytics available in Globe Investor, Financial Post and Forbes, or in your own built-in educational resources, such as the online brokerage platform, Questrade or BMO Investorline.
5. Place your order
When you open an account and deposit money to invest, you can buy shares by entering the company’s ticker symbol (GOOGL or GOOG) and the dollar value you want to invest or the number of shares you want to buy.
Most brokers allow you to place market orders where you buy or sell shares at current prices. Or you can order a limit and set a specific price to buy and sell the stock.
Google trades on the Nasdaq exchange, which means you can buy and sell shares between 9:30 am and 4:00 pm ET on Monday to Friday. Your brokerage may also offer extended pre-hours or after-hours trading.
6. Keep currency conversion fees and taxes in mind
You must keep in mind that your brokerage maintains the documents necessary to operate a business for US-based stock from Canada, subject to taxes and currency conversion fees, whether you are buying or selling your Google shares.
As part of the process of converting your Canadian dollars to US dollars to buy your Google stock, you will be charged a currency conversion fee of between 1% and 4% and another 1% to 4% to convert your money back to the Canadian dollar when you sell. These are all at the exchange rate when you buy or sell the stock.
You can bypass these fees with a US dollar bank account by keeping the money you use to buy US stock in US dollars at all times. You can also manage Norbert’s Gambit.
This is the strategy when you buy an interlisted stock or ETF on American and Canadian stock exchanges. You buy Canadian shares of that stock or ETF, then you ask your brokerage to “journal over” your Canadian shares and convert them into American shares of the same stock, then you can sell your American shares in US currency and use US dollars without any US dollars like APPL The result of buying a stock or ETF.
Meanwhile, as a Canadian, if you earn dividend income on US investments you are subject to a 15% withholding tax to the IRS, unless that investment is within the RRSP or Registered Retirement Income Fund (RRIF). These investment vehicles are specifically tax-deductible to an agreement between Canada and the US government, which does not include other Canadian registered accounts such as the Registered Education Savings Plan (RESP).
Plus, in the unlikely event that you make $ 5 million USD or more in your US-based investments, you will have to pay estate tax to the IRS when you die.
7. Check the performance of your investment
Even with a stack like Google, you don’t want to set up an auto pilot and never reconsider your investment. You need to check periodically to make sure it helps you make satisfactory progress to reach your goals.
To see how your investment measures up to the rest of the market, you can compare Google’s performance to a benchmark index like the S&P 500. You can also track the evolution of its finances using the same records from which you conducted your preliminary research.
How to sell Google stock
When you’re ready to sell your Google stock, the process is as easy as buying your stock. Log into your broker’s trading platform and enter the ticker symbol and the number or dollar amount of shares you want to sell.
If you have seen a big increase in value, you may want to consult a tax professional before selling your Google stock. They can help you devise ways to reduce any capital gains tax you may incur.
Fortunately, capital gains from US stocks are paid only as part of your Canadian income tax and you only pay 50% of the profits. This is unless the original property of the company in question comes from US real estate. In that case, you have to pay capital gains tax to the IRS, not just the CRA.
How to Invest in Google with Index Fund
Investing in any personal stock, even Google, is a risky bet. That is why financial advisers recommend a diversified method of investing in hundreds of stocks, not tens. Index funds and exchange-traded funds (ETFs) are one of the easiest and cheapest ways to duplicate the performance of key market indices such as the S&P 500. These funds are only exposed to hundreds of investments. The same share.
Fortunately, Google is easy to find in many index funds. It occupies 7% of the Nasdaq 100 funds and 4% of the S&P 500 funds.