Buy General Motors shares in India
The topic of investment is now more relevant than ever. Whereas investing used to be the prerogative only of large investors, nowadays, thanks to modern Internet technology, anyone with access to the Internet and a minimum amount for a start-up investment can try his or her hand at stock trading. It makes no difference whether you live in the centre of a large city, which is a recognized financial centre, or in a remote area of a small province, if you want to learn the basics of stock exchange science, everybody has the same chances on an online platform.
Our brief overview is about the opportunity to invest in General Motors stocks in India.
Why do investors choose General Motors to invest in?
General Motors Company is the largest car manufacturer in the USA. General Motors Company owns the following car brands: Cadillac, Alpheon, Opel, Buick, Chevrolet, GMC, Vauxhall and Holden. Until 2009, the company was called General Motors Corporation, but in 2009 the company began bankruptcy proceedings, after which not only the company name was changed to General Motors Company, but also the shareholder structure.
The history of General Motors is divided into the history of the old GM and the new GM. Old GM was founded by William Durant in 1908. Unlike Ford company, GM did not concentrate its attention on production of one automobile brand. Immediately after GM's founding, it included Buick, Oldsmobile, and a year later Cadillac and Pontiac. Eventually, General Motors joined more than 20 small automobile firms. General Motors acted as a holding company, as all companies included into General Motors worked practically independently from each other.
From 1931 till 2008 General Motors was the biggest automobile manufacturer in the world.
In the early 2000s the situation of General Motors began to deteriorate and the company began bankruptcy proceedings on 1 June 2009. According to conditions of bankruptcy, the Government of the USA gave nearly 30 billion dollars to the company, and in return it received 60 % of concern shares, the Government of Canada received 12 % of shares for 9.5 billion dollars, the United Auto Workers Union got 17.5 % of shares. The other 10,5 % of shares were divided among themselves by the largest creditors of the concern. President of the USA Barack Obama stated that the state has no plans to control GM forever and will get rid of the control stock as soon as the financial condition of the concern improves. As a result the new independent company General Motors Company was created on July 10, 2009. The old GM (General Motors Corporation) was renamed as Motors Liquidation Company.
In 2010 an IPO was held which became one of the largest in the history of the USA. The fact is that U.S. and Canadian governments did not aim at long-term control of GM and, therefore, sold shares for $23.1 bln. By results of the year GM received $4.67 bln profit for the first time since 2004.
After the bankruptcy and reorganization, General Motors revised its brand lineup. It was decided to abandon the production of high fuel consumption cars in favour of fuel efficient ones. Part of the production was closed, some of the companies were sold.
Nowadays production facilities of General Motors is spread over 35 countries worldwide, and its cars are sold in 192 countries. The company owns the following car brands: Buick, Cadillac, Chevrolet and GMC.
To date, General Motors has shown good growth and development, introducing new models of cars to the world. The American automaker General Motors has set a goal to completely stop selling cars with petrol and diesel engines by 2035. The company has also announced its intention to achieve carbon neutrality for all its operations by 2040 - 10 years earlier than rival Ford Motor Co. plans. GM will invest $27 billion to produce 30 models of electric vehicles by 2025. GM officials also said it plans to power all of its plants and properties with renewable energy by 2035. The company had previously set that goal for 2040.
The progressive plans, the leading position in the automotive market and the positive forecasts of the experts are attracting the attention of investors. You too can now invest in the auto industry giant's shares.
How to invest in General Motors shares in India?
The company's shares are traded on the New York Stock Exchange under the ticker symbol GM. General Motors shares are also traded on other exchanges. In particular, they can be traded on: Hamburg, Frankfurt, Berlin, Munich, Hanover, London and other European stock exchanges.
One can only buy General Motors shares through a stockbroker, a broker who deals in these shares online. Fortunately, you can find plenty of such brokers in India. Use the internet to search, choose a reliable broker by paying attention to such things:
- Whether the broker you choose is licensed and has all the necessary and statutory approvals to carry out such activities;
- What software does the broker offer for your use, is it convenient for you, is there a mobile version of the online platform, what deposit and withdrawal methods are available?
- What kind of commissions does the broker charge for his services;
- Pay attention to the feedback on the activities of the chosen brokerage company from already experienced investors and market experts.
If the broker is chosen, register on its online platform and go to the "promotions" section. In the drop-down list, enter the ticker symbol "GM". You will be given access to the General Motors share trading platform. Here you will also be able to see up-to-date information about current share prices, market opening-closing and trading hours, statistics on share price gains over a given period, and so on.
Your investment method will depend on your objectives.
Dividends are part of a company's income. Accordingly, the amount will fluctuate slightly, as it is directly related to profit trends. How much of the net profit the organization pays out to shareholders and how often (annually, semi-annually or quarterly) is stated in the dividend policy. In some cases, the number of distributions is calculated based on net cash flow rather than net profit. Sometimes companies may pay dividends out of undistributed profits from previous years. The board of directors recommends whether to pay part of the profits in the form of dividends and their amount.
Dividend investing can be classified as passive income because you do not need to follow the market all the time.
You should also keep in mind that a company may decide to stop paying dividends for a while to put all the money toward innovation and business development.
General Motors pays a quarterly dividend of 4.5-5% per annum.
A good alternative to the dividend investment method is trading derivatives, so-called CFDs.
The contract for difference (CFD) is a popular type of derivative that allows you to trade on margin, giving you more options in the financial markets. A CFD is a type of derivative financial instrument where you do not buy the underlying asset. Instead, you buy or sell units of that financial instrument depending on whether you think that the underlying price is going to rise or fall. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security between the beginning and the end of the contract.
Trading derivatives allows you to make a profit on a stock even if the price of the stock falls, because it consists of your prediction of the value of the stock. If you forecast a fall in the price of a stock and the price does go down, you make a profit.
How to buy General Motors shares in India?
To buy shares on an online trading platform, you must first register on the platform. Go to the broker's website, click on "register". Enter your username and a valid e-mail address. After confirming your registration through the automatic link the system will send you in an email, your account will be ready to use.
The system will ask you to open an account, select the type of account and click on the appropriate option in the pop-up window. We recommend to start working with the demo account, which is a training version of the real account. The money on the demo account is fictitious. The system automatically credits the amount of fictitious money in the amount of $10000 for you to be able to carry out test operations. Be sure to use the demo account for training, because this is a very good opportunity to try out how the platform works, but without the risk of losing your money. Of course, it is impossible to cash out these funds.
Open a real account when you feel confident enough to start real trading, with real money. Activate a real account by making a deposit of $10 or more. Select the 'make a deposit' option and select the option to transfer money, either by card or through one of the payment systems offered by the system. Using all the same methods, you can withdraw funds from your account.
How to invest in General Motors stock?
Step one is to research the market. The internet is awash with information - both about General Motors itself as an investment target and about brokers who broker and sell stock in the stock market. So research the market for services, choose a reliable broker online. Pay attention to the broker's experience in the investment business, its image and its reviews. Find out what commissions the brokerage firm retains for its services and what tools you can get by registering on their platform.
The second step is actually the registration itself. As mentioned above, registration is an elementary step that does not require any special skills or knowledge. However, you will need the knowledge and skills further on, when you want to enter the big world of investing.
At the start, a free demo account will help you out, so that you can test your skills.
Next step by step is funding your account, actually buying shares, trading and withdrawing profits.
Hopefully the last step, the withdrawal of profits, will always be present in your scheme. You should constantly improve your knowledge in the science of investing to do so.
You should also remember that the price of shares is influenced by factors such as the political and economic situation in the country in which you are located and in the country of origin of the company in which you are investing, as well as global developments around the world. That's why, you are therefore advised to keep up-to-date by keeping up-to-date with the news.
Over time, you will gain experience in trading and will be able to develop your own investment strategy for market behaviour. We hope that one day you will also be able to advise future investors and give valuable advice to others as an experienced stock market player and successful investor.