Buy General Motors shares in the UAE
With the development of internet technology, online investing is becoming increasingly popular around the world. Investing in large companies is a good option for saving money and increasing capital.
The 21st century offers an exceptional opportunity to invest to anyone who has a laptop (or even just a mobile phone), access to the internet and a minimum starting sum of just 10 US dollars. You don't have to live in a big, economically booming city to join the traders' business. You can live in a small province in the UAE, but on the World Wide Web you will have the same chance of success as a resident of New York or Hong Kong.
Of course, most people prefer to invest in large companies that are already well established in the market and have a positive track record with investors.
One such company that attracts the trust and interest of traders around the world is General Motors.
This review focuses on the topic of investing in General Motors in the UAE.
Why investors choose General Motors?
General Motors is the largest American automobile corporation and for 77 years was the largest automobile manufacturer in the world until 2008. In 2014, it was the world's third-largest automaker (after Toyota and Volkswagen) in terms of the number of cars sold (9.92 million units). It has production in 35 countries and sales in 192 countries. The company's headquarters is located in Detroit.
At certain stages of its existence, it was one of the twenty largest contractors in the U.S. military-industrial complex. About one-fifth of revenues from sales of products and services is made by the federal military orders servicing sector (not including foreign customers of the U.S. armament and military equipment).
General Motors was founded in 1908 by entrepreneur William Durant, who at that time already had experience in manufacturing cars in Buick. In the 21st century, the company became a shareholder of a large number of car companies: Fiat, Isuzu, Subaru and Suzuki. General Motors became the first company to divide cars into classes according to the income level of consumers. Today General Motors is present in 120 countries. Subdivisions of automobile concern work with brands: Baojun, Buick, Cadillac, Chevrolet, Daewoo, GMC, Holden, Isuzu, Opel and others.
In spite of the fact that the company suffered a serious blow in 2008, General Motors managed to keep its production capacity and enter a new round of development. Thousands of investors are still willing to invest in General Motors shares, because the company has multi-billion-dollar real assets which continue to generate good profits.
At the time of writing this review, GM's share price is $60.14 (+ $155.86 for the year).
How to invest in General Motors shares in the UAE?
General Motors shares are now traded on several stock exchanges in the Americas and Europe. The main trading venue on which General Motors shares are traded is the NYSE in New York. General Motors shares are also listed on the stock exchanges in Mexico City, Vienna, Berlin, Frankfurt, Munich and Stuttgart. You can find the company's shares under the ticker symbol GM.
To be able to work with GM stock in the UAE, you will need to find a broker who works with the exchanges on which GM stock is listed. The broker will provide you with an online trading platform through which you can transact in the stock market. Your investment method will also depend on your goals.
How to choose a trustworthy broker?
Your success in the stock market will largely depend on your choice, as all your transactions will be carried out through a broker.
Therefore, a reliable broker, first of all, should definitely have a license to conduct brokerage activities. Choose a broker with good experience, study its business reputation. There are many forums on the Internet, where experienced traders publish reviews of the brokerage companies - read these reviews, relying not on beautiful advertising, but on the real experience of others. Get the expert opinion of the market experts about the best brokers and try to choose among them.
The important point is the amount of commission for the services provided by the broker - the price should suit you.
Since you will be performing all the transactions through an online trading platform, be sure to learn how it works.
A good online trading platform is user-friendly and intuitive interface, informative and functional, 24/7 feedback, convenience of making deposits and withdrawal. Brokerage companies competing in the brokerage market are offering all new developments in trading platforms, so you can easily choose the one that is right for you.
Online trading platform
An online trading platform is software provided to you by a brokerage company to allow you to make online investment transactions. As we mentioned above, the platform should be user-friendly, clear and functional.
A sign of a good trading platform is the availability of a demo test account for training operations. Also, on the platform you will find free video lessons on investing and using the platform. In addition, there is an "information" tab with a breakdown of each company whose shares are being traded. You will have access to charts of share price fluctuations, and you can choose to analyse any time period, be it a year or even hourly. An interesting option is the choice of technical tools for analysis. Indicators such as Bolinger lines or Ichimoku clouds are ready-made solutions for analysis. To be able to use them, we remind you to study all the online lessons in detail.
Do not forget, trading on the stock market is an activity that involves a risk of loss. Therefore, act prudently, avoiding unnecessary risks and "sudden moves". If you are still inexperienced, risk only as much as the loss of which will not lead to your personal financial ruin in the event of an unsuccessful investment.
Depending on your goals, there will be different methods of investing.
The classic and probably safest, method of investing is the dividend method. In its simplest form, dividend stock investing involves purchasing a security and starting to receive a steady dividend payout over a short period of time. In fact, this is passive income, as close to this concept as possible, as it is. That is, you really don't need to do anything - no need to constantly monitor the company's share price chart, track quotes and trades, in other words, be an active participant in the stock market. You invest and wait for the dividend to be paid.
The dividend payout depends on the company's internal policy and is approved at the general meeting of shareholders. Although this type of investment is considered the safest, there are risks involved as well, such as:
- Reduction (reduction) of dividend payments;
- Complete cancellation of dividends on shares;
- Bankruptcy of the company.
General Motors pays a quarterly dividend of 4.5-5% per annum. The high dividend payout has always made the company's securities an attractive investment target for institutional investors.
If your goal is to make the fastest possible profit and the amount of capital to be invested is small, trading in derivative financial instruments (derivatives) might be an option for you.
Derivatives, known as Contracts for Difference (CFDs), are a way of trading price movements without directly buying or selling the instrument. The idea behind a CFD is that one party will pay the other the difference between the current and future values of an asset.
CFDs allow you to profit wherever there is an area of rising or falling prices. They allow an investor to buy or sell an instrument which may be worth as little as 10% of the underlying asset. The price contract offers great leverage options. The trading options depend only on the broker and his access to different instruments.
The contract does not imply physical possession of the shares themselves, which allows traders to avoid registering ownership of the assets and the associated costs.
The contract trading mechanism will help increase an investor's profits if they correctly predict price movements. However, the risk of loss also increases when the price moves in the other direction. This is actually the main disadvantage of CFDs.
How do I buy General Motors stock in the UAE?
To buy General Motors shares, go to the online trading platform, select the 'stock' section and enter the General Motors ticker 'GM' in the search box.
The system will redirect you to the platform section for GM stock. But first you will have to register on the online platform.
How to sign up for an online trading platform?
Once you have chosen a trustworthy broker, sign up for their online investment platform. Even a high school student can manage the registration, because the process is extremely easy and does not require any special technical knowledge or skills. You will only have to enter your username and a valid email address in the registration form, to which a link will be sent to confirm your registration. Confirm the email address as indicated in the message and your profile is ready to use.
Demo account: What is it and how to open it?
First you will be given access to a free demo account. A demo account is a practice, trial account, into which the system automatically credits dummy funds in the amount of $10000. A demo account is an exact replica of a real account and can perform the exact same transactions as a real account. But in the case of a demo account you are not spending real money; you are using fictitious money. This practice allows you to see which mistakes you make and which features are better and which are not. There is no need to risk any real money. You cannot withdraw money from your demo account.
How to make a deposit into a real account?
Once you have gained enough experience, you can start making real trades on the exchange. To start real trading make a deposit to your real account from $10 (minimum deposit amount may vary on different online exchanges). You can fund your account using payment systems listed on the platform. Withdrawal can be made using the same payment system that was used to make deposit. But when you withdraw funds you will have to go through additional verification on the platform for security purposes. Each platform provides a list of documents, scans of which must be submitted for such verification. Modern high security platforms may request access to your gadget camera and require photo verification.
Should you invest in General Motors stock?
Despite troubled periods in the early 2000s, General Motors has resumed its status as one of the leaders in the global automotive industry.
General Motors currently owns the car brands Buick, Cadillac, Chevrolet and GMC.
GM works closely with a number of companies, sharing markets and producing joint development of cars and engines. These companies include Fiat Auto SpA of Italy (Fiat, Alfa Romeo, Lancia, Ferrari, Maserati brands), Fuji Heavy Industries Ltd. (Subaru), Isuzu Motors Ltd. (development for GM commercial vehicles and diesel engines, Isuzu brand), Suzuki Motor Corp. of Japan (Suzuki).
The company is showing growth and development, introducing all new and improved vehicle models to the world. From the company's latest developments are the new 2022 Cadillac CT4-V Blackwing and 2022 Cadillac CT5-V Blackwing sedans.
The 2022 Cadillac CT4-V Blackwing features a 3.6-litre twin-turbocharged V8 engine. It produces 472 horsepower and 445 Nm of torque. The maximum speed is 302 km per hour.
The 2022 CT5-V Blackwing has a 6.2-liter V8 engine with 668 horsepower and 659 Nm of torque. The top speed exceeds 322 km/h.
"The 2022 CT5-V Blackwing is the most powerful Cadillac in history," said company spokesman Brandon Vivian.
The base model 2022 Cadillac CT4-V Blackwing is priced from $5,990 and the 2022 Cadillac CT5-V Blackwing from $84,990.
The cars are expected to start arriving at dealers as early as summer.
Not too long ago, General Motors unveiled the new 2022 Chevrolet Bolt EUV electric car. Thanks to a 65 kW lithium-ion battery, the car can travel up to 402 kilometres without recharging. The power plant has a total output of 200 horsepower. The price for a single copy of the 2022 Chevrolet Bolt EUV starts at $40,198.
Also, General Motors has announced production of a new electric car Chevrolet, which should start in 2022 at the company's plant in Detroit. The electric car is expected to be able to travel 644 km on a single charge.
The company's shares are showing growth (+155.86 % over the last year). The "trader sentiment" scale shows a confident "buy".
Thus, we believe that investing in General Motors stock in the UAE is a really good decision.