How to Buy Stocks on Twitter – Forbes Advisor France

Twitter is once again dominating business and social media headlines following news that Elon Musk, the multi-billionaire owner of electric vehicle maker Tesla, is ending his $44 billion deal to take over Twitter. In response, Twitter is suing Musk, claiming his exit strategy is a “model of hypocrisy.”

Musk cited a material breach of several provisions of the agreement, leading to a 6% drop in shares of Twitter, which are listed on the New York Stock Exchange, in extended trading.

Earlier this year, Twitter’s board recommended shareholders approve the deal, and Musk had previously expressed a desire to take the company private.

However, in May, Musk suspended his $44 billion deal to acquire Twitter (TWTR), citing issues with the number of spam accounts. At that time, he claimed that Twitter had to prove that less than 5% of active users were fake accounts.

Bret Taylor, Chairman of Twitter, previously said (in a tweet) that he was committed to completing the takeover on original terms: “Twitter’s Board of Directors has committed to complete the transaction at the price and terms agreed to with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.”

Over the past year, Twitter shares have been as low as $31 and as high as $73. Musk himself has a huge following on Twitter, with more than 100 million followers recently – only the sixth user on the social media site to do so.

How do I buy Twitter shares?

If you want to buy Twitter shares, you need to create a trading account with an investment platform or use a dedicated stock trading app.

Since Twitter is listed on the New York Stock Exchange (NYSE), you’ll need to ensure that your trading platform of choice offers access to international stocks. Make sure you know the international transaction and brokerage fees well in advance.

You can also choose to buy Twitter shares indirectly through a managed fund or an exchange-traded fund (ETF), a type of mutual investment security, but again, check the fees carefully. and product information materials.

Buy US stocks

Twitter’s stock symbol is TWTR. The New York Stock Exchange in the United States is open for trading from 9:30 a.m. to 4 p.m. (US Eastern Time).

You should be able to buy US stocks through most brokerage accounts, but be aware that unlike local stocks, you will not be eligible for postage credit, as the US does not share our dividend imputation system.

You will be required to complete a W-8BEN form (valid for three years) which entitles you to a withholding tax reduction for qualifying US dividends from 30% to 15%. This form will need to be updated whenever your contact information changes, including your address. If you do not complete this form, you are likely to be hit with a higher rate of withholding tax.

Holding US equities also involves exposure to currency risk. If the Australian dollar strengthens against the US dollar, your shares will be worth less in AUD (and vice versa).

How to Sell Twitter Stock

At some point, you will want to sell your holdings. To do this, log in to your investment platform, enter the stock symbol (TWTR) and select the number of shares you wish to sell.

Note that if you have made a substantial profit, you may be liable for capital gains tax (CGT) which will be added to your tax return.

The good news is that if you’ve held these shares for more than 12 months, you may be eligible for Australia Capital Gains Rebate and only have to pay 50% capital gains tax.

Again: speak with your accountant or financial advisor for more information.

What to remember when buying stocks

First, and most importantly, there are no guarantees when it comes to stock prices. They can and often do fluctuate from minute to minute, gains can quickly turn into losses and in the worst case scenario you can lose your entire investment.

In other words, don’t buy Twitter or any other stock thinking you’re onto a surefire winner. There are always risks involved, and you should be fully aware that you could suffer irretrievable losses.

However, if you understand and accept the risks, you might consider investing in stocks as a potential way to make more profit on your capital than if you put your money on deposit.

Here are some golden rules:

  • Know your limits: when buying stocks, only invest what you can afford to lose
  • Stay safe: build a solid financial foundation for your finances before venturing into investing – at the very least, have three months of normal expenses as a cash reserve in a rainy day fund
  • Avoid “leverage”: this is where you borrow to invest. It takes the basic risk of investing and makes it toxic because there is a risk of losing someone else’s money, not just yours
  • Minimize fees: As you’ll have seen in the articles above, fees charged by investment platforms and apps can eat away at the value of your holdings, so consider them carefully.
  • Spread your bets: Experienced investors reduce their risk profile by investing in a range of companies or buying funds that are themselves exposed to a range of investments
  • Do your research: knowing when to sell is as important as knowing when to buy, so keep an eye on your portfolio to see if action is needed; your platform or application should be able to help you with this.
  • Think long-term: An opportunity like the one presented by Twitter is eye-catching, but investing in stocks should be viewed as a long-term proposition – ideally five years – to allow time for sustained market growth.

Please note: investing in companies does not carry any guarantees. When buying shares of a company, it is possible to lose some, and very occasionally, all of your money. Past performance is no guarantee of future performance and this article is not intended as a recommendation of any kind.

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