How to Buy BP Stock - Wealth Boundless (2024)

Investing in stocks, like BP, a major player in the energy industry, can be a profitable way to grow your wealth.

BP p.l.c. (formerly The British Petroleum Company p.l.c and BP Amoco p.l.c, stylized as bp) is a British multinational oil and gas company headquartered in London, England. As one of the oil and gas “supermajors,” it’s among the world’s largest companies in terms of revenues and profits.

In this guide, we’ll guide you through the process of buying and selling BP stock.

How to Buy BP Stock

Step 1: Open a Brokerage Account

To invest in BP shares, you need to open an account with an online brokerage or investment app.If you don’t have one, you can check out our curated list of the best online brokers to help you start your search.

Brokers act as the intermediary between you and the stock market. They execute your trades, buying and selling stock on your behalf. There are a wide range of brokerage options available, including full-service brokers and robo-advisors.

Many brokers now offer fee-free stock trading. But before you start, check if there are any hidden fees or if you need to have a minimum amount in your account. To determine the type of account you need, consider your own investment goals.

• For long-term retirement savings, consider a Roth for tax advantages. If you’ve held your Roth IRA for at least five years, you can withdraw money without paying taxes or penalties. Unlike a Traditional IRA, a Roth IRA doesn’t have mandatory minimum withdrawals.
• If you’re saving for general goals like building wealth or a home down payment, a taxable investment account might be a more viable option. Unlike an IRA or a 401(k), you can withdraw your money at any time, for any reason, with no tax or penalty from a brokerage account.

Step 2: Identify BP’s Ticker Symbol

BP is listed on stock exchanges under the ticker symbol “BP.”

You’ll use this symbol to search for and buy BP shares on your chosen platform.

Step 3: Do Your Research

Before you invest, make sure to research BP and the energy industry thoroughly. Visit BP’s investor relations page on their official website for access to financial reports, presentations, and other valuable information about the company.

To compare BP with other energy companies, use metrics like the price-earnings ratio (P/E ratio). Also, review analysts’ price forecasts to assess future potential.

Step 4: Choose Your Investing Strategy

Decide on your investment approach.

Will you invest a lump sum, or do you prefer making periodic investments over time?

Consider using dollar-cost averaging, where you invest a fixed amount at regular intervals, as it can help reduce the impact of market volatility.

Step 5: Place an Order

Once you’ve done your research and decided on your investment strategy, log in to your brokerage account or trading app.

Search for BP using its ticker symbol, “BP,” and initiate your purchase order. Specify the number of shares you want to buy or the amount of money you’re willing to invest in BP.

Some platforms also offer “stop-loss” orders, allowing you to set a price at which your shares will be automatically sold if the stock’s value falls below a certain level, helping to limit potential losses.

Step 6: Monitor and Review

Once you buy BP shares, it’s important to check how they’re doing regularly. Look at your whole investment collection, not just BP, every month, three months, or once a year.

Checking regularly helps you see how well your investments are doing. This way, you can decide if you want to keep them, buy more, or sell some.

How to Sell BP Stock

At some point, you may decide to sell your BP shares. Here’s a step-by-step guide on how to do it:

1. Log In to Your Brokerage Account: Access your brokerage account using your login credentials.
2. Search for BP: In your account, search for BP using its ticker symbol, “BP.”
3. Select the Number of Shares: Choose the number of BP shares you want to sell.
4. Confirm the Sale: Confirm your sell order, and the brokerage will execute the sale based on current market conditions. Be aware that selling shares may have tax implications. Depending on your profit and your country’s tax laws, you may be liable to pay Capital Gains Tax (CGT). Check the relevant tax rates and allowances in your jurisdiction to understand your tax obligations.

Other Investment Options

Investing in BP doesn’t always require direct ownership of its shares. There are alternative investment options that allow you to gain exposure to BP’s performance indirectly:

1. Exchange-Traded Funds (ETFs): ETFs are investment funds that hold a diversified portfolio of assets, including stocks. Look for energy-focused ETFs that include BP among their holdings. Investing in such ETFs spreads risk across multiple companies, reducing your exposure to the performance of a single stock.

2. Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks and other securities. You can find mutual funds that specialize in the energy sector, including BP.

Learn more: Best Investment Options