Understanding how to buy Amazon stock is essential for investors interested in participating in the performance of one of the world’s most prominent technology and e-commerce companies. This guide details the step-by-step process for U.S.-based investors, including account setup, order types, relevant fees and Taxes, and key factors to consider before purchasing shares on the Nasdaq exchange.
Direct Answer
To buy Amazon stock (AMZN), open a brokerage account with a regulated broker and deposit funds.
Search for Amazon’s ticker symbol “AMZN” on the broker’s trading platform.
Choose an order type (market, limit, stop) and specify how many shares or fractional shares you want to purchase.
Review typical costs: commissions (if any), bid-ask spread, and small regulatory fees—these are “sample/illustrative” as exact amounts vary by broker and trading venue.
After submitting your order, Amazon shares typically settle in T+1 business day (one day after the trade date).
If held in a taxable account, consider U.S. tax treatment: you may owe capital gains tax when selling and dividend tax if Amazon pays dividends (as of late 2025, Amazon’s dividend policy remains under consideration but is not yet active).
Always check the broker’s and SEC’s official resources for updated rules, costs, and tax requirements, since regulations and platform terms may change each year.
Who This Is For & Suitability
Investors seeking long-term exposure to a dominant technology and e-commerce business.
Individuals comfortable with equity market volatility and single-company risk.
Those with sufficient time horizon to weather market fluctuations and potential sector rotation.
Anyone seeking to diversify a portfolio or gain exposure to Nasdaq-listed growth companies.
Not suitable for ultra-short-term traders without risk tolerance, or for those seeking regular income (no dividend as of current policy).
Key Facts (At-a-Glance)
Item
Details
Ticker Symbol
AMZN
Exchange
Nasdaq
What You Own
Common shares—ownership stake in Amazon, with voting rights (one vote per share; no dual-class structure currently).
Market Capitalization
One of the largest U.S. public companies, with varied market cap levels—check current figures for accuracy.
Order Types
Market, limit, stop-loss, stop-limit orders supported by most brokers.
Fractional Shares
Available at many brokers—invest with smaller amounts if needed.
Minimum Investment
No official minimum, but broker policies/fees may apply.
Settlement Cycle
T+1 (trade date plus one business day per SEC rules as of 2024); check with broker for any transition periods.
Dividends
None as of September 2025; company retains earnings for reinvestment (see official disclosures for any updates).
Buybacks
Occasional share repurchases—see SEC filings for latest activity.
Tax Flags
Capital gains taxes apply when selling; dividends, if ever paid, will have specific tax treatment (qualified/ordinary—verify with the IRS or tax advisor).
Choose a reputable, SEC-registered U.S. brokerage; most offer app-based trading, educational resources, and investor protections.
You will need to provide identification, Social Security number, and banking details to fund your account (necessary for anti-money laundering compliance).
Online brokers vary in account minimums, usability, order execution quality, fees, and whether they support features like margin or short selling. Compare official disclosures before choosing.
Check for SIPC insurance coverage—protects securities up to $500,000 per depositor but does not guard against market losses. For further information, visit the SIPC homepage (official).
International investors: If outside the U.S., local regulatory and tax rules may affect account setup, access, and withholding. For UK/EU, consult FCA or ESMA guidance as appropriate.
Placing Your Order: Step-by-Step
Search for Amazon using ticker “AMZN” on your trading platform.
Select the number of shares to buy; many platforms allow fractional shares, letting you invest with lower capital.
Choose order type:
Market order (executes immediately at best available price—subject to bid-ask spread and liquidity).
Limit order (you set a max purchase price—fills only if shares reach that price or better).
Stop or stop-limit orders for downside protection or structured entries.
Review commission, spread, and fee disclosures before submitting the order. Many U.S. platforms now advertise “zero commissions,” but bid-ask spread or other costs may still apply.
Place your order and monitor status—confirm execution and subsequent settlement (T+1).
Updated ownership reflected in your brokerage account after settlement.
Trading Hours, Order Types & Liquidity
Amazon trades during normal Nasdaq hours (U.S. Eastern Time: 9:30am–4:00pm). Most brokers also support pre-market and after-hours trading, but with reduced liquidity and higher volatility risks.
Liquidity is usually high for AMZN, enabling tight bid-ask spreads (the price difference between buying and selling).
Be mindful of partial fills, especially with larger orders or outside normal hours.
Volatility, beta, and free float may affect your trading experience and price execution.
Costs & Taxes
Cost/Tax Component
What It Covers
How It’s Experienced
Commissions
Broker execution
Many brokers offer “$0” per trade, but always verify latest terms (“sample/illustrative”).
Bid-Ask Spread
Liquidity cost
May be $0.01–$0.05 per share for high-volume stocks like AMZN, but varies by market condition.
Review Amazon’s earnings per share (EPS), revenue growth, operating margins, and market capitalization as provided in their latest quarterly and annual SEC filings (EDGAR database (official)).
Consider key financial metrics: price-to-earnings (P/E), price-to-book (P/B), return on equity (ROE), and return on invested capital (ROIC).
Assess total return potential by evaluating both stock price appreciation and—if Amazon’s policy changes—any future dividends or buybacks.
Understand current risks facing Amazon (sector competition, regulatory shifts, currency volatility, changes in consumer spending, margin pressure).
Monitor corporate actions such as stock splits, buybacks, and any announced share issuances or dilution (see investor relations sections on the official website).
How to Evaluate Amazon as an Investment
Business model: Global leader in e-commerce, cloud computing (AWS), digital advertising, and innovative technology infrastructure.
Financial quality: Robust free cash flow (FCF); variable margins due to investment cycles—review official quarterly filings for details.
Growth drivers: Expansion in AWS, international retail, subscription services, logistics automation.
Valuation: Compare against peers using EV/EBITDA, P/E, PEG ratios (price/earnings to growth), and forward-looking multiples from consensus analyst estimates—never rely on media hype, use fundamental data from official sources.
No cash dividend as of September 2025—total return comes from price appreciation and, at times, share buybacks.
Risks
Company-specific: Regulatory risk (U.S. and international), rapid technological changes, management transitions, and unpredictable earnings due to reinvestment cycles.
Market/systemic risk: Exposure to broad equity market moves, high beta may increase volatility in portfolios.
Liquidity risk: Generally low for AMZN, but sudden shifts in market sentiment can cause surges in bid-ask spread and price swings.
Concentration risk: Allocating substantial portfolio weight to a single stock heightens idiosyncratic risk.
Margin account risk: Buying on margin increases potential gains and losses and may require additional deposits if the stock value declines; margin calls are governed by FINRA and your broker’s rules.
Alternatives & Comparisons
Side-by-Side
Feature
Individual Amazon Shares
Index ETF (e.g. S&P 500 ETF)
Amazon-focused ETF/Mutual Fund
Concentration
High (single stock)
Low (diversified basket)
Medium (sector or theme focus)
Liquidity
Very high for AMZN
Very high (major ETFs)
Varies by product
Order Flexibility
Any order type supported
Supported for ETF/fund shares
Some funds only daily pricing
Dividends
None as of 2025
Pass-through from S&P 500 constituents
Depends on underlying holdings
Minimum Investment
Varies by broker—fractional shares possible
Low—many brokers allow fractional ETF ownership
Some mutual funds have higher minimums
Tax Impact
Direct capital gains/losses
Distributions, internal gains in funds
Depends on fund tax efficiency
Checklist: How to Evaluate Before You Buy
Review Amazon’s most recent SEC filings (10-K, 10-Q) and analyst call transcripts.
Analyze business health: market share, total addressable market (TAM), margin trends.
Scrutinize financials: free cash flow (FCF), net income, leverage, return on equity (ROE)/return on invested capital (ROIC).
Assess valuation: compare P/E and P/B ratios to sector averages and growth trends.
These filings contain the most current and complete information on Amazon’s finances, governance, and risks.
What is the minimum to buy Amazon stock?
There is no official minimum, but brokers may have account minimums or share constraints.
Fractional shares remove traditional barriers; check with your broker for exact terms.
Conclusion & Next Steps
Buying Amazon stock gives you direct ownership in one of the most important U.S. technology companies, with the benefit of stock market liquidity and access to public disclosure rules.
Consider your financial goals, risk tolerance, and investment horizon; owning a single large-cap growth stock exposes you to both greater return potential and higher volatility.
Always use SEC-, FINRA-, and IRS-official resources to verify account requirements, broker status, current fees, and evolving tax rules before and after purchase.
Document your research, track your holdings, and periodically review Amazon’s filings for updates on dividends, splits, capital allocation, and risk factors.
