What is Rivian?
Another early backer was Ford (NYSE: F), which invested $500 million in April 2019 when the two companies announced plans to develop electric trucks together. Unfortunately, those plans never came to fruition. However, Ford kept its investment in place. It’s worth mentioning that in the 2021 fiscal year, Rivian invested over $1.8 billion in research and development (R&D), up 141.51% from its previous year’s investment of $766 million.
Rivian IPO: when did the company go public?
Rivian became a publicly-traded company through an initial public offering (IPO) in November 2021, selling 153 million shares at an initial share price of $78, raising $12 billion and valuing the company at $66.5 billion, making it the seventh largest U.S. IPO on record. The Rivian stock symbol is RIVN, and it trades on the NASDAQ exchange. You can acquire Rivian stock via multiple brokers, which we will overview later in this guide.
Step-by-step process on how and where to buy Rivian stock
Rivian is a publicly traded company, meaning you can buy Rivian stock through a broker. The steps involved in purchasing RIVN shares are outlined in the following section in detail.
Step 1: Choose a broker
To buy Rivian stock online, you’ll need a brokerage account. Several platforms are available, but the right one will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When evaluating brokers, consider the following features:
Fees: Brokerage fees is a type of fee collected by brokers to execute your transactions or provide specialized services. However, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading; Security: Pick a reliable broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC); Trading tools: Active traders may want more out of their brokerage accounts. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s usually a good idea to look for an easy-to-use platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus; Access to market data: You should search for a platform that gives you access to solid market research and reporting tools to help you trade confidently with updated data; Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; particularly helpful for investors who don’t have limited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy.
Also, traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors.
Where can I buy Rivian stock (RIVN)?
Access to the financial markets is easy and inexpensive, thanks to various online brokers. However, choosing the right broker optimized for your needs (investing goals, educational tools, trading style) is paramount for a successful trading experience. To securely invest in Rivian and buy RIVN stock, consider these brokers:
1. eToro
Commission-free stock trading; 2,000+ stocks from 17 exchanges; Fractional shares available; User-friendly platform.
2. Interactive Brokers (IBKR)
Commission-free stock trading; Global stock-trading on 90+ market centers; Fractional shares available; Extra income on fully paid shares; Lowest financing rates for margin accounts in the industry; No account minimum.
Step 2: Fund your account
Once you have selected a broker, the next step is funding your trading account. Remember, it can sometimes take up to three days for the funds to be deposited.
Step 3: Research the company
When investing your money in the market, doing your research is crucial. If you want to buy Rivian stock, keep an eye out for the current Rivian stock price, as well as past price data, overall valuation, and company announcements regarding new launches or relevant news stories. The best place to start your research on a stock is to go through its public filings with the SEC. For example, Rivian annual and quarterly reports can be accessed directly from the SEC website, providing a comprehensive overview of the company’s financials. In addition, letters to shareholders can be found on Rivian’s investor relations page, and recent press releases are shown on Newsroom. If you’re relatively new to investing or have a low tolerance for risk, there may be better choices than a new company like Rivian for your portfolio. On the other hand, if you genuinely believe in the company’s mission and are okay with weathering the ups and downs of a young company, then buying in early could be the right choice for you.
Step 4: Decide how much you want to invest
After you’ve done your research and determined that Rivian is the right stock for you, you’ll need to decide how much you want to invest. The amount of money you invest ultimately depends on the price and number of shares you want to buy. If the share prices of stocks you’re interested in are financially out of reach, you can also explore fractional shares. Fractional shares allow you to purchase a portion of a stock instead of the full share. Because investing can have unpredictable returns, it’s crucial only to invest what you can afford to lose and to be mindful of your risk appetite.
Step 5: Place your order and buy Rivian stock
Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy Rivian stock and how much you can invest, and they’ll do it on your behalf. If you’re using a brokerage account, simply log in and enter the ticker symbol RIVN in the search bar. There are a few different execution options to choose from, including:
Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability); Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy Rivian stock at $27 or lower. You would then set the limit price at $27, and the order will only execute when the stock reaches the set price or lower; Options contract: Options speculation allows for leveraged positions in a security at a fraction of the cost of the underlying asset. A call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. Derivative products can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts.
Step 6: Monitor your investment
While “set it and forget it” is a solid strategy for a diversified portfolio of ETFs, for single stocks like Rivian, investors should keep a close watch on press releases, company health indicators such as debt and revenue, industry performance as well as overall market conditions. Then, depending on your financial goals, use that knowledge to reassess whether it’s best to hold onto the stock or sell it. You may also want to track competitors’ performance in the EV space, such as Tesla (NASDAQ: TSLA) and Lucid Motors (NASDAQ: LCID).
Should I buy Rivian stock?
Besides looking at Rivian’s fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts. This gauge displays a real-time technical analysis overview for your specified timeframe. It can be a valuable technical analysis tool for many traders by simplifying trading decisions by demonstrating the real-time recommendations of popular technical indicators such as moving averages and oscillators. Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing in stocks
Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:
How to sell Rivian stock?
If Rivian is performing differently than you’d expected or you’ve reached the financial goal you set when you first invested in the company, selling your shares is easy. If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, you can simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.
Pros and cons of buying Rivian stock
All investments carry a degree of risk. Despite powerful backers and high levels of buzz, there are some potential concerns about Rivian.
In conclusion
Since entering the stock market in November 2021, Rivian has yet to live up to the hype, shedding well over half of its value since the IPO. However, Rivian presents an intriguing investment opportunity, particularly in these early days. If you’re willing to take on some risk, investing in Rivian could prove lucrative, as the company is expected to revolutionize the automotive industry with its EVs, breaking into markets largely untapped. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
