The Pioneer in Space Travel

SpaceX is an exciting company that focuses on space exploration.

Lots of people enjoy following news about the company and watching its launches.

Pioneered by Elon Musk, who has been successful with companies such as electric car manufacturer Tesla and payments giant PayPal, you may have the confidence to invest in SpaceX well.

so it’s natural that people want to invest.

If you’re considering investing in SpaceX, here are the things you need to know.

No Direct Way to Invest

Because SpaceX is not a publicly-listed company, you cannot buy shares of the company or invest in SpaceX directly.

The only way to invest in SpaceX is to invest indirectly.

That means:

Either invest in businesses that SpaceX works with or investing in companies that hold an interest in SpaceX.

Companies That Have an Interest in SpaceX

There are some companies that have invested in SpaceX.

One way to indirectly invest in SpaceX is to invest in businesses that own shares in SpaceX.

The most accessible is likely to be Alphabet (NASDAQ: GOOG), the parent company of Google.

That said:

If you buy shares in Alphabet as an indirect way to invest in SpaceX, the performance of Alphabet’s services, like Google and Youtube, will have a much higher impact on your investment than SpaceX’s success or failure.

Unless SpaceX becomes worth trillions overnight, most of the change in Alphabet’s stock price will be based on other factors.

How to Invest in SpaceX Indirectly

If you’ve decided that investing in SpaceX indirectly, by buying shares in other businesses that own an interest in SpaceX, here’s what you’ll need to do.

Have a brokerage account

The first thing that you’ll have to do is open a brokerage account. Brokerages help facilitate the purchase and sale of securities, like stocks, bonds, and mutual funds.

There are many brokerage companies out there, each with its pros and cons.

You can get perks if you invest in your brokerage’s funds, so if you have a specific fund you want to invest in, that can guide you to the right brokerage.

Once you’ve chosen a brokerage to work with, you have to open an account.

That typically means filling out an application, providing some identifying information, and linking a bank account that you can use to fund your brokerage account.

Place a buy order

When you’re ready to buy a stock, you’ll have to place a buy order. There are two primary types of buy orders you can use.

The market order is the simplest. Simply tell your broker how many shares to buy and your brokerage will buy those shares at the best available price.

If shares are available for purchase, you’ll buy them, but you might wind up paying more than you expected, especially if you’re buying shares in a company that isn’t traded frequently.

Limit orders are safer, but a bit more complicated. With a limit order you specify how many shares to buy and the maximum price you’re willing to pay for each share. If the shares are available below your maximum price, your broker will buy them at the best available price. If no shares are available below the limit you set, you won’t buy shares at all.

With a buy limit order, you’ll know the maximum amount you’ll spend, but there’s a chance that you won’t buy any shares, which could lead to you missing out on an investment opportunity.

Other Ways to Invest in Space

SpaceX is just one of the few businesses that is involved with manned spaceflight.

So, there are other ways to invest in space technology.

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