SpaceX is a private aerospace manufacturer and transportation services company based in Hawthorne, California. Founded in 2002 by entrepreneur and engineer Elon Musk, SpaceX designs, manufactures, and launches advanced rockets, satellites, and spacecraft for a variety of commercial and government applications. SpaceX is best known for its reusable launch vehicles, which have enabled them to become the world’s largest privately-owned space exploration company.
SpaceX has also become a publicly traded company, meaning that it has shares available for purchase on the stock market. As such, it has opened up opportunities for traders and investors alike to gain exposure to the company’s long-term growth and potential upside.
In this article, we’ll look into the different ways one can invest in SpaceX stocks, the risks associated with investing in the company, and how to actually purchase the stock.
What Is the SpaceX Stock Ticker?
The SpaceX stock ticker is SPCE, a three-letter identifier that follows the company’s trading of its stock on the New York Stock Exchange (NYSE). SPCE is the symbol that is used by investors, brokerage firms, and custodians to recognize the security when trading, researching, and investing in SpaceX.
Where Can You Buy SpaceX Stock?
SpaceX stock can be purchased through a wide range of stockbrokers, including many of the major traditional firms as well as various online brokerages. In order to purchase SPCE stock through a stockbroker, the investor will normally need to fill out an account application form to open the account.
Once the account is open, the investor can purchase the stock online, through a phone order, or in-person at the broker’s office. Most brokers offer commission-free trading for standard size orders up to a certain volume.
Different Ways to Invest in SpaceX Stock
- Directly Purchasing the Stock
One of the most common ways to invest in SpaceX stock is to directly purchase the SPCE shares. By directly purchasing the shares an investor is taking a long position in the stock, meaning they are buying the stock in hopes that the price will increase over time.
- Investing in a Mutual Fund
Another popular way to invest in SpaceX stock is through a mutual fund. Mutual funds are a collection of stocks and bonds held by a fund manager, with the objective of generating returns for shareholders. Mutual funds come in a variety of sizes and can be tailored to fit the investment needs and goals of any investor.
- Investing Through an ETF
Exchange-traded funds (ETFs) are similar to mutual funds in that they are collections of assets managed by a fund manager. However, ETFs generally have lower management fees and are traded on the stock market like a single stock. ETFs are a good option for investors who want to take a passive approach to investing in SpaceX.
Risks Involved With Investing in SpaceX
Despite the positive outlook for the aerospace industry, there are some inherent risks associated with investing in any space exploration-related business. The most significant risk is the development of innovative technology, as SpaceX is constantly pushing boundaries to reach new heights. As with any aerospace venture, accidents can occur, as can delays in development due to unforeseen factors.
In addition, SpaceX is considered a heavily investor-backed entity, meaning failure to realize returns could cause further drops in the stock price. Finally, since the company is still relatively new, the stock market is still adjusting to the company’s valuation, leading to an uncertain risk profile with potential for high volatility.
SpaceX has revolutionized the space exploration industry with its innovative technologies, pioneering reusable launch vehicles, and growing customer base. With the company’s stock now available for purchase, investors have the opportunity to benefit from the company’s long-term growth and potential for increased revenues.
Despite the potential upsides, investors should be aware of the risks associated with investing in the space exploration industry, such as unexpected technology delays, heavy investor-backed stocks, and significant volatility. By keeping these risks in mind, investors can make a more informed decision when considering the purchase of SpaceX stock.