Samsung Overview

Samsung Group, founded in 1938, is one of the largest conglomerates in South Korea. Initially involved in industries such as food processing, textiles, and insurance, it has gradually evolved into one of the leaders in the global electronics manufacturing sector. While Samsung also has business interests in areas like shipbuilding, heavy industries, and theme parks, electronic products remain its primary source of revenue.

Not only is Samsung Group a pillar of the South Korean economy, but it also constitutes a significant part of the country's exports, accounting for approximately 20% of its GDP. Therefore, Samsung holds considerable economic importance and wields substantial political influence.

Samsung Group is primarily listed on the Korea Exchange. To allow global investors to participate, the company has listed Global Depositary Receipts (GDRs) on major global exchanges such as the London Stock Exchange, with the stock code SMSN. While U.S. investors are prohibited from purchasing GDRs, they can gain exposure to Samsung stock through exchange-traded funds (ETFs) such as iShares Inc's iShares MSCI South Korea ETF (EWY), which is listed on NASDAQ and currently holds approximately 20% weighting in Samsung Electronics.

Despite variations in how one can invest in Samsung stock compared to other companies, Samsung's performance over the years has been undeniably impressive. From March 15, 2020, to January 3, 2021, Samsung's stock price surged by 127%. Despite some fluctuations in the following year, its stock price has remained relatively stable. Ranked eighth in global brand value and consistently among the top 20 companies globally in terms of market capitalization, Samsung is not a high-risk startup but a well-established entity.

Steps to Purchase Samsung Stock

1. Choose a Suitable Broker

When considering investing in Samsung stock, selecting a reputable broker is crucial. This article will evaluate several respected companies to assist you in making an informed choice. These companies are regulated by top-tier financial authorities such as the Financial Conduct Authority (FCA) in the UK, ensuring compliance with customer protection legislation. They are renowned for their excellent track records, large client bases, and comprehensive support features.

For novice traders, these brokers are excellent choices and provide free demo accounts for trading practice with virtual funds. Even if you have decided to purchase Samsung stock, spending some time practicing on a demo account is highly beneficial. This allows you to not only familiarize yourself with trading functions but also mitigate common mistakes beginners might make.

2. Open and Fund Your Account

The process of opening an account online is straightforward and can be completed in minutes. You'll need to input personal information to ensure the security of your account and assist the broker in complying with regulatory requirements. Once your email address is verified, you can initiate fund transfers. Multiple payment methods are available, with bank transfers and debit/credit card payments being the most common. It's worth noting that debit/credit card payments are usually instant, while bank transfers may take up to 24 hours to clear.

3. Place Orders and Determine Position Size

Once your account is verified and funded, you can allocate some funds to hold Samsung stock positions. Samsung Electronics, being a favored electronic giant among investors, may be found on the main markets of your broker's homepage. Alternatively, you can locate Samsung stock through the search function.

You'll only need to fill in two data fields: the amount you want to invest and your trading direction. Some brokers offer convenient features like eToro, where you can input the cash amount you wish to trade instead of a fixed number of shares. This is particularly useful when dealing with stocks with higher prices. For instance, if the current Samsung stock price is around $1750, but you only want to invest $500, you can input that amount on eToro and purchase 0.27% of Samsung stock. The broker will automatically allocate the corresponding amount to your account.

4. Set Stop Loss and Limit Orders

While the most straightforward way to enter the market is by simply buying stocks, you may also consider some risk management options in your trades. It's advisable for beginners to set stop-loss orders and to some extent, take-profit orders. These are automatic instructions you input into your trade to close your position when the Samsung stock price reaches a certain level.

Take-profit orders help lock in profits, while stop-loss orders limit losses if the price falls. The advantage of these orders is that you don't need to monitor the market constantly; the system will execute them for you automatically.

Another method of managing risk is by reducing position sizes to limit potential losses. Not setting stop-loss or take-profit orders sometimes can avoid premature stop-loss or selling after market fluctuations or positive news announcements.

5. Select and Purchase Samsung Stock

Once you confirm all data fields are correct, purchasing Samsung stock is as simple as clicking a button or screen. Your cash account will decrease, but you'll gain Samsung Electronics positions that match real-time market price fluctuations. It's strongly recommended to monitor real-time profits and losses in the portfolio section of your account to promptly identify any errors. Correcting mistakes is crucial to ensuring successful trades, even for experienced traders.

Conclusion

Samsung is the world's largest smartphone manufacturer and the largest memory chip maker. Its dominant positions in these markets have made Samsung stock highly sought after. The current subdued activity in stock prices presents an excellent opportunity for some to purchase Samsung stock.