How to buy Ferrari shares?

The Italian carmaker Ferrari is one of the world's most famous manufacturers of racing and sports cars. It was founded by Enzo Ferrari in 1928 in the city of Maranello, where its headquarters is still located.

Since 1989, the company has been acquired by FIAT concern. Today, it   has more than 3,000 employees, produces the most expensive cars in the world and has an annual turnover of more than $ 3 billion and a total capitalization of $ 9.8 billion.

Ferrari stock quotes are available on the NYSE platform under the RACE ticker - ISIN: NL0011585146, CUSIP: N3167Y103, with a par value of 1euro cent. To date, more than 245.14 million Ferrari shares have been issued.

How to buy Ferrari shares?
How to buy Ferrari shares?

How to invest in Ferrari shares?

There are several ways to make money on shares. Investors make their choice in favor of this or that option based on experience, willingness to take risks and available capital. All methods usually bring a variable income.

Online trading

The key idea of trading is to buy shares at the lower price and sell them at a higher price. The stock market creates favorable conditions for this activity. Stock quotes can both grow significantly and collapse in a few minutes. Ferrari shares price depends on the following factors: 

  • The financial situation of the company;
  • Market environment;
  • Political situation.

To trade on your own, you need to have a good understanding of how the securities market works and constantly monitor changes in it. Such stock management cannot be called a passive option for making money.

Long-term shares storage

Having bought a share, the investor can profit from the growth of its market valuation. So you can start a long-term investment: buy shares of one or more companies that will almost certainly rise in value in a few years. It is a safe investment option, but not too profitable. It justifies itself only when the investor has a lot of capital.

Dividends

The advantage of dividends is that they do not depend on stock quotes. The investor receives a guaranteed income, the amount of which is approved by the meeting of shareholders. Dividends are paid annually or quarterly.

The disadvantage of dividends is that each company has its own policy of these payments. Some companies immediately declare that they do not plan to pay them. Others are silent about the dividend policy. There are variants when companies pay shareholders up to 30% of net profit or 50% of free cash flow.

Invest in Ferrari shares online
Invest in Ferrari shares online

Ferrari shares Investment Platform

Ferrari shares are traded in Milan on the Italian Stock Exchange (Borsa Italiana, ISE). They have been assigned the ticker RACE. You can buy shares from 09:00 to 17:30 local time (GMT + 02: 00). 

The second most important marketplace for Ferrari shares is the New-York Stock Exchange (NYSE). The NYSE IPO took place on October 20, 2015. The volume of trading the American floor is inferior to the Milan one but is still very large. Ferrari shares on the NYSE are traded under their regular ticker, RACE, the trading day starts at 9.30 am and finishes at 4 pm local time (GMT-04:00).

Ferrari stock investment platform
Ferrari stock investment platform

How to start investing in Ferrari shares?

To buy Ferrari shares, you need to find a broker with access to the Italian or American stock exchange, since stock exchanges do not work directly with clients - there are special intermediary companies for it.

How to register? 

This procedure is fast and easy. You need to state your username, password and email address. The site will send you an email for confirmation, and your account is ready after you follow the link.

Registration on a trading platform
Registration on a trading platform

How to open a demo account?

A training account allows you to study the trading terminal and trading strategies without any investments. It is available right after you complete the registration on the site.

How to open a real account?

If you are already a registered user, you only need to activate a trading account. For this, the requirement is to replenish your deposit with a minimum sum.

How to open a demo or real account
How to open a demo or real account

How to fund a deposit?

All reputable brokers have a FAQ section on their websites. There, you will find all the information about payments channels accepted by the platform. Modern brokers are customer-oriented and usually provide all possible payment options – wire transfer, bank cards, e-wallets.

Minimum deposit amount

There is no fixed sum for the minimum deposit. Every broker sets up its one threshold for providing you access to real time trading terminals.

Deposit replenishment
Deposit replenishment

How to withdraw money?

You need to apply for money withdrawal on the platform. Usually, such requests are considered within 24 hours. The main rule for a positive outcome is to be a verified trader. For this, you need to pass through the verification procedure by providing copies of the documents proving your identity.

Security of Ferrari share Investments

Experience and brand popularity make the company a strong player in the financial market. In 2018, Ferrari showed growth in all significant indicators: sales grew by 10%, net profit increased by 46%, and the annual turnover was about 3.5 billion euros. The company's products remain in demand even in crisis years and do not depend on the economic situation. 7% of the company's supplies go to China, where they have seen strong growth. Ferrari increased sales in China, Hong Kong and Taiwan by 79% in the first quarter of 2019. Over the past 5 years, the company's shares have more than tripled, which clearly confirms the confidence of investors in a stable future for Ferrari. Ferrari stock prices are used to calculate multiple stock indices. It makes them even more reliable and secure.

How safe is it to invest in Ferrari shares?

Investing in stocks is the acquisition of assets that either generate income by themselves, or increase their value due to the difference between the purchase and the sale of shares. Therefore, if you want to know if it is possible to make money on stocks, the answer is yes. It is really one of the best and safest ways to invest money. 

There are many benefits to investing in stocks. First, you don't need a lot of money to get started. For other industries, such as real estate or business, a very solid start-up capital is required.

 But the biggest advantage of stocks is that they provide the most upside potential. Of course, there is no guarantee that each share will rise in value. Therefore, modern investors use extended investment portfolios, which include securities from various companies. Ferrari shares showed a very good growing tendency, which seems to be rather stable.

Ferrari shares
Ferrari shares

How to safely invest in Ferrari shares online?

There are literally hundreds of different Forex brokers on the market. You can choose any of them, but be careful not to come across the fraudsters. Even the most experienced traders can mistakenly end up with a dishonest Forex broker.

Here's a quick checklist of a good broker qualities:

  •  The broker must have licenses from well-known regulation authorities;
  • Professional and functional website with all the information you need;
  • Responsive support and various communication methods;
  • Good trading conditions with a wide range of trading instruments with good liquidity and low spreads;
  • Leverage, day trading strategies, technical indicators;
  • Educational materials about forex basics;
  • High speed of order execution;
  • Low commission fees;
  • Various options for depositing and withdrawing funds;
  • The general appearance of the site and its atmosphere should be user-friendly.

My investments in Ferrari shares are protected

If you have an intention to invest in securities of the Italian automaker in order to make a profit in the long term, you should take into account a large number of parameters that affect the expected profit. The following factors are of paramount importance:

  • Check what models under the Ferrari brand may appear on the market in the near future.
  • Read if competitors plan to release new products in this segment. Serious competition can influence the sale of sports cars under the Ferrari brand.
  • Is there a discussion on new environmental regulations regarding models of cars with powerful internal combustion engines? These are the types of engines that are installed on Ferrari sports cars. The discussion and introduction of new environmental standards can often lead to stagnation in sales of sports car manufacturers that are equipped with powerful gasoline or diesel engines.
  • Are there plans to introduce new regulations in different countries of the world, which could lead to a drop in demand for luxury goods, which include sports cars produced under the Ferrari brand? In particular, the economic downturn and active fight against shadow incomes in the countries of Southeast Asia have led to a drop in demand for luxury goods in this region of the world.

When working with the company's securities, a trader needs to take into account a large number of factors that affect the demand for models of Italian cars in different countries. All this information will help you better understand when and how to buy Ferrari shares and when it is best to sell them.

FAQ:

Can you buy Ferrari shares?

Yes, every individual can purchase shares of this public company. The only condition is to organize it via regulated brokers that have legitimate permission to buy shares on the stock exchange.

The Ferrari brand remains synonymous with luxury. Premium cars of the upper price segment are manufactured under this brand. The company's business is stable, the value of shares is growing and it makes Ferrari securities a good investment instrument.

Ferrari shares are traded in Milan on the Italian Stock Exchange (Borsa Italiana, ISE). They have been assigned the ticker RACE. Individuals can get access to stock exchanges via brokerage companies. You only need to find a broker that accepts a trader from South Africa and open a brokerage account.

The price of a share is $ 209.

You can buy as many shares of this company as you want. So if you made up your mind to become a Ferrari shareholder, you are welcome to start even with one share.

Since 2016, Ferrari has been paying dividends to its investors, which makes its shares even more attractive. The dividend yield is paid once a year in May. In 2016, it amounted to $ 0.51 per share, in 2017 - $ 0.69, and in 2018 - $ 0.84.

Residents from South Africa can also trade via online brokerage platforms. Check if a broker accepts the traders from your location, study the trading conditions and register on the site to get access to a trading terminal.

The cost of the Ferrari securities reached a historic high in November 2020. Share quotes rose to € 182.95 ($ 221.70) on the Milan Stock Exchange. At the same time, on the New York Stock Exchange, Ferrari shares were traded at record levels of $ 217.49 per share.

Ferrari shares slightly fell after the resignation of the head of the company Louis Camilleri in December 2020. But this drop was temporary.

Ferrari shares continue to renew their highs - the price has confidently fixed itself above the psychological mark of $ 200 and the upside potential has not yet been fully worked out. In the nearest future, further inertial upward movement is expected.

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GENERAL RISK WARNING
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose