Pop quiz, hotshot: What is the largest company in the world right now?
If you judged by the price of shares on the stock market, then you might say Amazon since it has shares around £3,000 each.
But that isn’t even the highest share price in the world. Berkshire Hathaway has the most expensive shares in the world, and its revenue is a little more than one third of the largest company in the world.
The real biggest company in the world is Apple, with a market capitalisation of around 2.1 trillion.
That is a trillion. With a T. Its chief competitor is a Saudi Arabian oil company with a market cap of 1.9 trillion, with Microsoft in a close 3rd place with a market cap of 1.8 trillion. Yet at the same time that Apple’s market capitalisation beats out the rest of the competition, its share prices are modest.
While Amazon has exploded in value since 2020, Apple’s share prices are about 1/20th as valuable as Amazon’s. So, what is the deal? Is Apple not growing? Is it doing something to limit its growth?
And more importantly, if it is still the biggest company in the world, how can one get in on that value? What does one need to do in order to buy Apple shares? Let’s take these questions one at a time.
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Where Do You Buy Apple Shares? 🛒️
Apple shares are publicly traded on the stock market. But you cannot just go to the gas station and buy shares with your credit card. So, where do you go to buy them? The answer is, like many things, the internet. Specifically, “trading platforms” that will connect you with the stock markets that sell shares.
Apple is a publicly traded company listed on many international stock markets. That means whether you want to buy from the New York Stock Exchange, the London Stock Exchange, or the Hong Kong Stock Exchange, as long as you have the money, the stock market will provide you with Apple shares.
The process of getting on a trading platform starts with finding one. The most commonly used ones are:
1. Interactive Brokers – Best Overall
The advantage that Interactive Brokers offers you is the ability to make as many trades per day as you want. It also gives you access to their research and analysis pages, which teach you a lot about trading.
The drawback is that its interface is not nearly as clean or easy to use as others. But if you want to learn how to trade at a deeper level, then it is the place where you can level up your expertise.
2. eToro – For European Users with Crypto Interests
Of the three we are listing, eToro is definitely a more niche trading platform.
It specialises in serving European customers, as well as connecting cryptocurrency holders with the stock market.
That means you can use it to turn your Bitcoin, Ethereum, or Dogecoin into Apple shares if you want.
Visit eToroeToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
These are just a few examples of trading platforms. Depending on your experience level, skills, and the kinds of investments you will be making, there are others that might suit you better. The point is that you have to make use of a trading platform in order to buy shares from the stock market.
How to Get on a Platform ➡️
The process of getting on a platform will involve a few steps. Before you start the process, have a few things ready:
- Your personal information
- Your taxpayer ID or social security number
- Your bank account number
- Your bank routing number
The personal information you will need for basic account creation. But the taxpayer ID number is more personal, and you might be understandably hesitant to give that out. The reason it is required is because trading stocks on the stock market produces revenue (hopefully), and that revenue is taxable.
Your bank account and routing number are both required for funding your account. Part of the reason you can’t buy shares at the gas station is that you can’t just buy them with a credit card. The payment process of a credit card is not as reliable as just transferring the money right from your bank account.
Once you have all this, you can make your account, fund it, and start buying Apple shares.
How to Make Money off of Apple Shares 💷️
Let’s be honest here—you are not buying Apple shares because you love Apple so much. In fact, no one is on the stock market except for their own personal benefit. The great thing about the stock market is that it acknowledges that fact, and still functions anyways. Nobody works together, but things get done.
To begin understanding how to make money off of Apple shares, let’s talk about Apple’s share price.
Why is Apple’s Share Price so Small?
Amazon’s share price is around £3,000. Apple’s share price is around £160 (between £150 and £160 depending on the day). But Amazon’s market cap is 1.6 trillion while Apple’s is 2.1 trillion.
Why is there such a sharp discrepancy between market cap and share price?
What is Market Cap?
As mentioned briefly earlier, “market cap” is short for “market capitalisation”. This is important to note, since most people mistakenly assume it to mean the “cap” on a company’s market value.
Market capitalisation is pretty easy to figure out: It is the value of a company’s total shares. That means if you multiply the value of the shares by the number of shares in existence, you get market cap.
This puts the value of an individual Apple share into a different light. Apple’s market cap is massive, but its share price is relatively low. That means its number of shares must be immense. And that is true.
Why are there so Many Apple Shares?
There are two big reasons why there are so many Apple shares in existence: The first is that it is an old company, at least compared to other industry leaders. It was founded in the 1970s, compared to Amazon (founded in 1994) and Tesla (founded in 2003).
Basically, it simply has had more time to produce more shares. But that is not the only reason.
When you buy a share in a company, you own part of the company. If you buy enough shares of the company, then you can own a “controlling interest” in the company. This is not easy, cheap, or common, but it is theoretically possible. But here is a question: What does a share represent?
A share represents a percentage of a company, but that percentage is almost never a whole number. A company is actually entitled to “release” more shares, which deliberately shrinks the value of each existing share. This is something companies rarely do, and it often requires shareholders to approve.
But what it means is that you can buy 50% of all Apple shares, and then Apple can “release” more shares. The number of shares you own does not change, but the number of shares in existence does. The excess supply reduces the price of each individual share and keeps you from owning 50% of them.
What Does This Mean for the Consumer?
It means that making money off of Apple shares is easier than making money off of other huge companies’ shares. Consider that Berkshire Hathaway company we mentioned earlier. How much does an individual share of theirs cost? More than £500,000. Good luck affording that on your first day.
But with Apple shares at £160, it is easy for the average consumer to buy a share. And more importantly, it is easier for you to buy a share, and then sell it within the same day for a profit.
Day Trading Apple
While day trading is hard work, some companies make it easy. Apple is one of those companies. This is because while Apple’s price does fluctuate, it never goes so low that it is worthless. It also never goes so high that you cannot buy it. That means its low share price works to your advantage.
If you want to make money off of Apple shares, then all you have to do is wait for it to reach its “demand line”. This is the lowest its share price will go before demand for the company’s services prevents it from going further.
Then, you sell at the “supply line”. This is the most a share will be worth before the company’s ability to supply its services is exhausted by demand.
Buy low and sell high. The stock market classic. And Apple makes it easy.
Conclusion
Apple’s products are distributed all over the world. It has only seen growth for more than a decade. That makes it a great investment, whether you are planning for the long term or the short term.
Just be sure to trade wisely, carefully, and with a responsible amount of money. And good luck out there.
