How To Buy Pfizer Stock
Welcome to Trading Brokers step by step guide to buying Pfizer stock. Here you will find an easy to understand explanation of trading Pfizer stock. This includes how to buy Pfizer shares online, what you need to trade Pfizer stock and how to open a trading account with a stock broker so that you can buy Pfizer stock online today.
Pfizer is one of the world’s largest multinational companies and largest pharmaceutical companies. What are those factors that move its stock?
Maybe you have heard of buying Pfizer stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Pfizer stock can help you along your journey.
Overview of Pfizer
Pfizer quite has a substantial history behind it. The company, which started in 1849 by selling fine chemicals, went on to become a comprehensive pharma company with over 200 drugs in production. Headquartered in New York City, it specialises in producing pharmaceuticals, over-the-counter medicines, generic drugs, vaccines, diagnostics, and more for both humans and animals.
Pfizer’s products cover different medicine areas such as neurology, oncology, cardiology, immunology, and others. One of its groundbreaking releases was the cholesterol-reducing drug Lipitor, which was the world’s top-selling drug for a considerable time. Another is Viagra, the best-selling erectile dysfunction drug.
The company has operations in about 125 countries with major manufacturing facilities located in Asia, Europe, and the Americas. Through a combination of strategic acquisitions and organic growth, especially as a result of groundbreaking product releases, Pfizer has become one of the largest pharmaceutical and biomedical companies worldwide. Such include the $68 billion acquisition of its competitor, Wyeth, in 2009.
Pfizer has consistently been ranked top 50 on the Fortune 500 list. Its subsidiaries include Array, BioPharma, Hospira, Medivation, Parke-Davies, Anacor Pharma, Meridan Medical, and others.
Pfizer Business Lines
Pfizer operates via three business segments, which are:
Responsible for over 70% of revenue, the Biopharma Group includes business units such as Oncology, Rare Disease, Vaccines, Inflammation, and Immunology.
The Upjohn segment, responsible for 20% of revenue, deals with the firm’s generic medicines business.
Pfizer has merged this division with that of fellow pharma giant GlaxoSmithKline while retaining some 30% of the joint venture. The division is responsible for popular over-the-counter (“OTC”) products.
Pfizer Inc trades on the NYSE as PEE. Several factors affect the movement of its stock price. However, we believe that the below-discussed issues will play more significant roles in determining most future actions.
What Moves Pfizer Stock Price?
Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Pfizer stock price. We will look at some of the important factors that you need to consider if you are looking to invest in Pfizer stock.
Controversies and Brand Reputation
Pfizer has been accused – and sometimes convicted – of being involved in some unhealthy business practices ranging from stealing competitors’ trade secrets to a conviction for illegal promotion of harmful drugs. There are also accusations of unfair pricing and aggressive lobbying.
All these tend to play into its brand image, resulting in a gradual decline. As studies have shown, brand reputation plays a crucial role in influencing stock market value.
Pfizer is a pharma giant with strong subsidiaries in the most crucial segments of the industry. However, there is still room for expansion. Geographically, the company can make further inroads into emerging markets.
As far as sectors are concerned, it still has some catch-up to do in the nutraceuticals space, for instance. There is also the field of precision medicine and other industries like Oncology.
The global pharmaceutical industry is a tightly competitive one with no clear leaders. What makes this interesting is that the competition is spread across the globe. Pfizer must continue to innovate and deliver superior value at the right prices to remain relevant.
Pfizer rose to the tops of the biomedical industry based on the strength of its innovation demonstrated in the number of groundbreaking patents it won. However, it is gradually losing this crucial hedge as it is losing patents quite fast and does not have any significant applications in the pipelines.
Investing in Pfizer
Investing in Pfizer stock is when you buy Pfizer shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Pfizer stock in order to try and make a profit when the Pfizer stock price increases in value.
Is Pfizer a growth or dividend stock? It is the latter, as it possesses strong fundamentals and pays dividends. However, it can also intermittently function as a growth stock, especially when it wins a new patent or makes a groundbreaking release.
Trading Pfizer stock
Trading Pfizer stock is when a trader speculates on the movement in the Pfizer stock price without actually owning the shares in Pfizer. Traders tend to buy and sell Pfizer stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Pfizer stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
One of the most popular ways to trade Pfizer stock is via CFDs (contracts for differences). When trading Pfizer CFDs, you do not actually invest in Pfizer shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Pfizer 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 Pfizer will rise or short (sell) positions if they thought that the Pfizer 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 Pfizer 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 Pfizer 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.
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Pfizer investors can use futures trading to speculate on the price movement of Pfizer 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.
Pfizer spread betting
Spread betting is a financial derivative that enables traders to speculate on Pfizer 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 Pfizer stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Pfizer options are financial instruments that are derivatives based on the value of Pfizer’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 Pfizer market price.
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.
Pfizer is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Pfizer, may consider ETFs.
Where to buy Pfizer 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.
ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade Pfizer 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 Pfizer stock with relative ease. The cost involved to get started makes trading Pfizer 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 Pfizer stock to try and earn profit from the variation in Pfizer’s stock price. When trading Pfizer CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Pfizer 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 Pfizer’s stock for a more long-term hold.
Buying Pfizer 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 Pfizer, it is important you understand the dynamics that affect the Pfizer stock price.
How to trade Pfizer stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Pfizer stock online. Here is a summary of the key steps:
1. Decide if trading Pfizer stock is for you
Trading Pfizer 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 Pfizer stock online.
2. Educate yourself
Before trading Pfizer 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 Pfizer 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 Pfizer stock broker
In order to trade Pfizer 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 Pfizer
If you have made it this far then you may be ready to start trading Pfizer stock online! The next step is to research Pfizer 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 Pfizer 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 Pfizer stock
Once you feel ready to trade Pfizer stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Pfizer, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Pfizer trades for the long-term, whereas traders may buy and sell Pfizer stock on a daily basis.
Is trading Pfizer stock right for me?
Trading Pfizer 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 Pfizer 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 Pfizer 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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