If you’d bought a single share of Amazon NASDAQ:AMZN when it made its IPO back in 1997, you would’ve paid $18. Had you held onto that single share, your investment would be worth more than $28,000 today.
As of Feb. 26, Amazon was trading for nearly $3,100 a share. You may think that sky-high price tag means Amazon is out of reach for you, but you’re wrong. You can still invest in Amazon in penny stock-sized amounts. You just need to download an app called Stash Invest and buy fractional shares of blue-chip stocks.
What Is Stash Invest
Stash Invest is an app launched in 2015 that offered people an inexpensive and non-intimidating way to invest*. Over 5 million people use Stash Invest to manage all their traditional and fractional stock purchases.
The Stash Invest app allows investors to start investing for free. Not only that, but Stash makes choosing investments extremely simple.
Stash Invest is offering a $5 bonus if you open an account this month.
How To Invest Small Amounts In Stocks Like Amazon
Instead of making a huge bet on a stock that’s highly unlikely to become the next Amazon, you can invest in the actual Amazon in just about any amount you want. Fractional shares, offered by Stash Invest, let you invest an amount of your choosing for expensive stocks like Amazon. Stash will allow you to invest as little as $0.05.
Here’s how it works: Suppose you want to invest $10 in a stock that trades for $200. You can invest your $10 and receive one-twentieth of a share. It’s a good way for beginning investors or investors with limited cash to choose individual stocks without putting much money on the line.
Why Fractional Shares Are Great
What’s important to know if you’re hoping to find the next Amazon is that Amazon was never a penny stock. The term “penny stock” typically refers to a stock that trades for $5 or less – with many trading for less than $1.
They also usually have a market capitalization of $50 million or less. Not only did Amazon’s $18-a-share price when it went public put it outside of penny stock territory, but its market cap was already about $438 million back then.
Stash Invest allows you to participate in the markets and invest in companies no matter their current stock price. Remember, if you open your account this month, Stash Invest will give you a $5 bonus.
*Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures. Investment advisory services offered by Stash Investments LLC, an SEC-registered investment adviser. This material has been distributed for informational and educational purposes only and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. This material is not intended as investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. Investment advice is only provided to Stash customers. The offer is subject to Promotion Terms & Conditions.