How To Buy Coca-Cola Stock

How To Buy Coca-Cola Stock

Welcome to Trading Brokers step by step guide to buying Coca-Cola stock. Here you will find an easy to understand explanation of trading Coca-Cola stock. This includes how to buy Coca-Cola shares online, what you need to trade Coca-Cola stock and how to open a trading account with a stock broker so that you can buy Coca-Cola shares online today.

Founded in 1892, Coca-Cola is a multinational company with interests primarily in the manufacturing and marketing of non-alcoholic beverage drinks. The company’s stock, because of its stability and regular dividend payments, is highly popular for retirement plans. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Coca-Cola shares can help you along your journey.

Overview of Coca-Cola

Coca-Cola, the Atlanta-headquartered, multinational beverage conglomerate, has over 500 brands in over 200 countries. No wonder it prides itself as the “World’s Largest Nonalcoholic Beverage Company.” Its products portfolio comprises soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks. The company’s flagship “Coca-Cola” drink has consistently ranked as the most-sold non-alcoholic beverage worldwide.

As a brand, Coca-Cola is widely loved. It also influences other aspects of life, such as popular culture. Its biggest competitor is PepsiCo (PEP). Their rivalry is such an interesting one that their famous Cola Wars have even made it to the screens.

Investing in Coca-Cola

Investing in Coca-Cola stock is when you buy Coca-Cola shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Coca-Cola stock in order to try and make a profit when the Coca-Cola stock price increases in value.

Trading Coca-Cola stock

Trading Coca-Cola stock is when a trader speculates on the movement in the Coca-Cola stock price without actually owning the shares in Coca-Cola. Traders tend to buy and sell Coca-Cola stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.

You can buy and sell Coca-Cola stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).

Coca-Cola CFDs

One of the most popular ways to trade Coca-Cola stock is via CFDs (contracts for differences). When trading Coca-Cola CFDs, you do not actually invest in Coca-Cola shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Coca-Cola stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Coca-Cola will rise or short (sell) positions if they thought that the Coca-Cola stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.

For example, if you think Coca-Cola shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.

On the contrary, if you think Coca-Cola shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.

Coca-Cola futures

Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Coca-Cola investors can use futures trading to speculate on the price movement of Coca-Cola stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.

Coca-Cola spread betting

Spread betting is a financial derivative that enables traders to speculate on Coca-Cola stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.

Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Coca-Cola stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.

Coca-Cola options

Coca-Cola options are financial instruments that are derivatives based on the value of Coca-Cola’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.

Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Coca-Cola market price.

Coca-Cola ETFs

Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.

Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.

Coca-Cola is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Coca-Cola, may consider ETFs.

Where to buy Coca-Cola stock?

Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open an account to trade stocks online.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BVI, CBI, FFAJ, FSA, FSCA

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA

Min $200 Deposit

2010

1:500

Review Trade! Trade!
Terms & conditions apply
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

ASIC, CySEC, IFSC, DFSA

Min $5 Deposit

2009

1:888

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5.

ASIC, CySEC, FSA

Min $200 Deposit

2007

1:500

Review Trade! Trade!
Terms & conditions apply
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why trade Coca-Cola stock?

Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Coca-Cola stock with relative ease. The cost involved to get started makes trading Coca-Cola stock accessible to traders of all experience levels from across the globe.

The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.

The majority of traders would look to buy and sell Coca-Cola stock to try and earn profit from the variation in Coca-Cola’s stock price. When trading Coca-Cola CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Coca-Cola shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Coca-Cola’s stock for a more long-term hold.

Buying Coca-Cola stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.

However, before investing in Coca-Cola, it is important you understand the dynamics that affect the Coca-Cola stock price.

Factors that move the Coca-Cola stock price

Coca-Cola trades under the ticker “KO.” Do you know the most fun fact about the company? Warren Buffett, the Oracle of Omaha, the richest contemporary investor, loves it as a brand and has committed much of his funds to its stock.

Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect Coca-Cola’s stock price. Many factors may affect the stock’s volatility over time, but the most compelling of them seem to be:

The economy

The Coronavirus pandemic put some pressure on Coca-Cola’s business, which was reflected in its earnings. If there is an economic crisis and a prolonged recession ensues, consumer perception of the brand could be affected. Of course, soft drinks could be the last thing people want to buy during a depression.

Other economic issues that may impact Coca-Cola include the trade wars, which may pressure the company to increase prices both locally and internationally.

Emerging markets

There is a growing consciousness for healthy eating in the West. Since carbonated drinks are considered harmful, there is bound to be a systematic but gradual decline in the demand for them. This is already happening.

As a result, Coca-Cola is increasingly looking beyond the West to emerging markets. China, India, Russia, and countries in Latin America, Asia-Pacific and Africa still view Coca-Cola positively. Collectively, these are already responsible for at least 40% of earnings, which is still expected to grow.

New products

Even though Coca-Cola can bolster earnings from emerging markets, it is only a matter of time before the awareness becomes mainstream and people start to look for healthier options. It has to start developing new product lines, especially in the healthy beverage category. The good news: the company’s investments so far in this sector have noticeably paid off.

What you should know before investing in Coca-Cola stock

When investing in stocks generally, it is crucial to understand the category in which each stock belongs. Some stocks are called growth stocks in that they are believed to generate faster returns over a shorter period, far and above the average generated by the entire market. In essence, those stocks “grow” very fast within a short time and are usually found in sectors such as technology (software). However, a downside of growth stocks is that they (usually) do not pay dividends. They are also generally comparatively risky.

On the other hand, dividend stocks do not typically deliver super-fast returns or growth but tend to pay stable dividends. The firms in this category usually include old, intergenerational conglomerates and are traditionally found in dated sectors like utilities, energy, telecoms and FMCG. Coca-Cola is a dividend stock, a big one. It has even been regarded as the “retiree’s dream stock.”

Finally, whether to invest in Coca-Cola or not will depend mainly on your investing goals: Do you want potentially fast but risky growth? Or do you want regular dividend income? Evidently, that will be your own decision to make.

How to trade Coca-Cola stock online?

If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Coca-Cola stock online. Here is a summary of the key steps:

1.     Decide if trading Coca-Cola stock is for you

Trading Coca-Cola stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Coca-Cola stock online.

2.     Educate yourself

Before trading Coca-Cola stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.

Most brokerages will also provide a free demo trading account so that you can practice trading Coca-Cola stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.

3.     Choose a Coca-Cola stock broker

In order to trade Coca-Cola stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.

If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.

4.     Research Coca-Cola

If you have made it this far then you may be ready to start trading Coca-Cola stock online! The next step is to research Coca-Cola to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.

5.     Have a trading plan

Some of the most important factors that can help determine Coca-Cola stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.

6.     Buy and sell Coca-Cola stock

Once you feel ready to trade Coca-Cola stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Coca-Cola, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Coca-Cola trades for the long-term, whereas traders may buy and sell Coca-Cola stock on a daily basis.

Is trading Coca-Cola stock right for me?

Trading Coca-Cola stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.

However, it is important to understand the significant risks involved with trading Coca-Cola stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.

This can be a useful way to familiarise yourself with how to trade Coca-Cola stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.

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