Samsung is in a battle with Apple and Google for dominance in many different technology areas. Their most recent product success is their line of Galaxy S phones which are extremely popular and putting up sales numbers that rival the iPhone. Without a doubt, Samsung is a hot company right now that is doing a lot of things right.
Buying Samsung Stock In America
If you looking to buy Samsung stock and live in the United States, unfortunately you will have quite a challenge ahead of you. That is because Samsung trades on the Korean stock exchange and does not have an ADR which trades over here in America. The ticker symbol for Samsung is 005930 which you can immediately see is not the type of letter symbol we have over here.
Anyone looking for information on how to buy Samsung stock should be warned that most online discount stock brokers will NOT let you buy and sell on Korea’s exchange. This means you have to find a broker (and you will have to call around to do this) that will allow you to open such an account. There are brokers that can set this up for you but the effort involved is far more than most retail investors want to go through, especially just to buy one stock.
Is There Another Way To Buy Samsung Stock?
A compromise to buying the stock outright on the Korean exchange is to buy ETF’s in the U.S. that hold a significant amount of Samsung in their portfolios. An exchange traded fund (ETF) is a basket of stocks that trade under one ticker symbol. They have become very popular in recent years because they allow investors to target different sections of the market and do it easily by buying just one stock (the ETF). The good thing is that investors can buy ETF’s through any of the big discount brokers you find online today including TD Ameritrade.
Some ETF’ funds that currently hold Samsung in their portfolio include EWY, IPK, AAIT, AXIT, MSCI, and AIA. While each of these exchange traded funds has Samsung in them, they contain other stocks as well so you will be getting exposure but not as great an amount as if you were to buy the stock itself. Please note that each of these funds hold different percentages of Samsung stock and you should research them individually online (or ask your broker) to find out the exact percentage (as well as what the other holdings are) at the time you are thinking about buying.
As I write this on 11/4/2013, each one of these funds is at or near an all time high, as is Samsung stock (005930) itself. Investing in Korean companies as well as technology companies is very popular right now and both the NASDAQ and NYSE keep pushing higher so you should consider that as well.