Buy Alcoa shares - how to invest in Alcoa shares in India

ALCOA CORP is a leading American steel company and one of the world's top three aluminium producers. It is one of the world leaders in the extraction of bauxite, production of alumina and aluminium and aluminium alloy products. Its products are used worldwide in the aircraft, automotive, industrial, construction, oil and gas segments, etc. It is a supplier to Airbus, Ford, etc.

Founded in 1888 in Pittsburgh, Pennsylvania. Until 1907 it was called Pittsburgh Reduction Co. Produces about 30% of US aluminum (1980). The production capacity is more than 2 million tons of primary aluminum per year.

"ALCOA mines bauxite in the USA, Australia, Brazil, Dominican Republic, Suriname, Jamaica, Indonesia and Guinea.

The company is headquartered in Pittsburgh, Pennsylvania, USA. The Alcoa factories are located in more than 30 countries. The company's products are used in industry, aviation, automotive, packaging, construction, oil and gas and defense industries. The company's other businesses include precision castings and fasteners used in industry and aviation. The company produces aluminium constructions, siding, cast aluminium products, including car wheel rims. 

Revenue fell 11% last year to almost $9.3bn, due in part to lower aluminium and alumina prices. For 2019, it was as high as $10.433bn.

Alcoa plans to deliver between 2.7 million and 2.8 million tonnes of aluminium in 2021. Last year it delivered 3m tonnes. The company expects primary aluminium consumption in China and other countries to rise this year as the economy recovers from the pandemic and the impact of additional stimulus measures.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

Growth in global aluminium consumption could reach 7%, according to Alcoa. Nevertheless, it is not known how long the pandemic will last, so the forecasts may not come true, the company warned.

Despite the company's poor results in the previous year, it is expected to see a positive trend in the first quarter of 2021. As of the date of this writing, Alcoa's shares were trading at $32.78, up 30.06% from a month ago, and up 340.46% from a year ago.

Stock market analysts foresee an increase in the company's share price over the next few years.

The company's leading position in the global commodities market as well as the above figures attract potential investors. 

An investor today is not necessarily a big bank or a corporation with millions of dollars. 

Below we take a look at investing in Alcoa stock in India. ,

How to invest from the comfort of your own home with just a few dollars of start-up capital? Is it possible to buy shares in a global commodity giant and become a stock market player if you don't live in a major financial centre and live in India? Definitely yes. Below we look at how it happens.

Information on Alcoa's current share price
Information on Alcoa's current share price

How to invest in Alcoa shares in India?

Alcoa shares are traded on the New York Stock Exchange. Your first task will be to find a brokerage company that deals in Alcoa shares, as you can only buy Alcoa shares through a licensed intermediary.

In India, many brokerage companies offer their services online, giving you access to an online trading platform to buy the stock and trade. Choosing a reliable broker is important as the intermediary will have access to your accounts and it is the functionality of the trading platform that will largely determine the success of your transactions. What requirements does a good broker have to meet? 

Firstly, the brokerage company you choose should be licensed and have all necessary documents for carrying out such activities - now it is easy to check the availability of all necessary registrations through the Internet. 

Next, follow the advice of market experts by studying the reviews of experienced traders. The open forums on the subject of online trading will help you find information and feedback about the intermediary company you choose - read the information, using only trusted information sources. And, because all of your transactions will take place through an online trading platform, be sure to consider the platform as your future trading venue: is it easy to register, are the deposit and withdrawal methods suitable for you, what are the minimum deposit and withdrawal amounts, what kind of tools the platform offers, is there a mobile version and so on. As trading becomes more popular in the modern world, you will find many Forex brokers competing with each other and competing in the quality of their services and the functionality of their platforms, so you will have plenty to choose from.

Once you have registered on the platform (we will look at how to do this in detail below), search the platform's "stocks" section and type "AA" in your search query. You will be taken to the Alcoa stock section of the platform. Here you will see complete and up-to-date information about the stock price, trading conditions, trading schedules, commissions, and you will also see a detailed chart of price movements over any period you choose. You will have the opportunity to use indicators for technical analysis - this is especially convenient, because when you use a particular indicator, you will visually see the indicator markup on the chart, which is very clear and convenient. 

Select "AA" ticker to find Alcoa shares on the platform

What are the investment options for Alcoa? You can use the dividend method of investing or the now popular derivatives trading method.

The dividend method of investing is considered a classic method and involves the purchase of assets with the subsequent payment of dividends from the company's profits.

The dividend strategy is a method in which the purchase of shares is based on interest income from them, rather than on the return on the share price. Such strategies are the most conservative and far less risky than those that involve speculation on the share price on the stock market. By opting for a dividend stock investment strategy, an investor is in effect investing in a business, acquiring a share in it, becoming a co-owner. And owning a part of a business naturally also means getting a proportional share of the profits made by the company.

ALCOA CORP pays out dividends 5 times a year. Payments have ranged from $0.03 to $0.09 per share, which is how much the company last paid to its shareholders, on November 26, 2016. 

Dividend investing is investing with the aim of earning as much passive income as possible on a regular basis. This strategy allows for capital appreciation by adhering to the compound interest theory. But, as you can see, this method of investing can't produce instant returns. 

Alcoa share trading platform online
Alcoa share trading platform online

If you have a small initial capital and your goal is to generate income in the short term, a good alternative to the dividend method of investing is trading in derivative financial instruments. One popular product is the so-called CFD (Contract for Difference). 

The CFD is a contract which is made between two parties - the buyer and the seller. The essence of the contract is that the positive difference between the opening and closing prices of a certain financial instrument is paid by the seller to the buyer, and the negative difference is paid by the buyer to the seller. The contract also stipulates the time at which the difference is determined. The main advantage of CFDs is the reduced requirement for trading capital. This reduction is achieved, as there is no need to pay taxes and commissions for delivery of goods, to be included in the register of shareholders, as well as other fees, which are paid for trading with shares. In addition, CFD trading allows the use of leverage. Trading with financial leverage can substantially increase your initial capital, however it involves a lot of risk.

So before using the "multiplier" feature, which automatically includes leverage, get a good understanding of how it works and make sure you understand the use of leverage.

Also, always invest an amount that you are not afraid to lose if a trade fails. We are not holding you to failure, just a reminder that investing is a pretty complex and risky process that requires a lot of study and good experience. If you're new to the market, start with a minimum amount and use a demo account to test your trading skills. We will discuss what a demo account is and how to get started below.

Information on the trading conditions for Alcoa shares
Information on the trading conditions for Alcoa shares

How do I buy Alcoa shares in India?

Once you have chosen an intermediary brokerage company and decided which type of investing suits you best, you will have to register on the online trading platform provided for use by your chosen brokerage company, open an account, fund this account and, accordingly, make transactions in the stock market. Let's take a step by step look at how to do this.

How do I register on an online trading platform?

Registering on the online trading platform is an easy process and you can easily handle this step. On the brokerage company's website, find the "registration" option and clicking on it will open the registration form. Enter your username and email address. Click 'register'. The system will send you an automatic email with a link to confirm the registration. Click that link, thereby confirming your registration. You can now log on to the platform and make transactions. 

Go through a simple registration process
Go through a simple registration process

How do I open an account?

The system will automatically open two account types: Demo and Live. The Demo account is a dummy account, which is used for learning and testing transactions in the system. This account is free, and on the account you will see the amount of $10000. You can use this money to try out transactions on the platform, but because the funds are not real, you will not be able to withdraw them. A demo account is a good opportunity to test the platform and practice your skills without risking your own capital.

But, as your main goal in investing is to make profit, you will need to open a real account and fund it with real money.

Choose a trading account
Choose a trading account

How do I make a deposit and withdraw money?

To activate a real account you need to fund it with real funds, which means you have to fund it in any way you like. The platform offers several options for funding your account, which can be either by using a bank card or via the Internet payment systems. The minimum deposit amount is normally $10, while the minimum investment amount is even lower - you can start with as little as $1! Withdrawals can be made using the same payment systems as deposits, with a minimum withdrawal amount of $2.

Top up your account online
Top up your account online

How to invest in Alcoa shares in India?

So, to summarise the above, we can see that investing in Alcoa shares in India can be done by anyone with a minimal start-up capital and the desire to get into the complex world of investing.

What do you need to do? Find a reliable broker dealing in Alcoa stocks, register for an online stock trading platform offered by the chosen broker, open an account and make a purchase.

In order to invest successfully, it is first of all important to understand what your objective is. If your goal is to preserve your capital and have the opportunity for passive income, then dividend investing may be a good option for you. This option does not offer an immediate return and is usually suitable for those who have a lot of money to invest.

If your goal is to make a quick profit, then the option of derivative trading will be more suitable for you. However, profits from this type of investing cannot be called a passive income option, because you have to be an active participant on the stock market - with CFDs you can make money in as little as 10 minutes, but you need to be able to calculate the direction of the price of the asset. You can also lose your savings just as quickly. Trading with the help of CFDs involves your active participation, non-stop tracking of market changes, and reacting quickly to such changes. 

Buying Alcoa shares
Buying Alcoa shares

What can affect the price of Alcoa stock? Above all, the price level of aluminum and aluminum raw materials in world markets, the company's expansion into new markets, its current financial condition (net income, earned income compared with the previous period, dividend payments), and also economic processes in the country and the general state of the world economy. 

Alcoa securities are an asset with high growth potential. If market conditions are favourable, they can generate good returns.

So, you can invest in Alcoa shares in India even with a small start-up capital and without visiting the company's office. All you need is an internet connection and, of course, a great desire to become a successful trader.

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