The Cineworld Group (LON: CINE) is the world’s second-biggest cinema chain with operations in 10 countries.
Over the years, Cineworld has taken over numerous cinema brands, many of which are still in use, including Regal Cinemas in the USA, Picturehouse in the UK, and Cinema City in Eastern and Central Europe.
Read on for more details about buying shares in Cineworld Group.
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Step 1: Get a share trading account
Cineworld Group is listed on the London Stock Exchange. This means that if you want to buy shares in Cineworld, you'll need to use a broker who can access this stock exchange. You can buy their shares with any of the brokers listed on this page.
When comparing options, check what commission and foreign exchange fee the broker charges as well as features like market access, what instruments can be traded, whether they have fractional share investment (so you can diversify your holdings with fractional shares of more expensive companies), etc.
Step 2: Fund your account
First you'll need to fund your share dealing, ISA, or SIPP account to buy shares in the company.
You can fund your account using a bank transfer or with your debit card. Some brokers will accept credit cards or alternatives like PayPal as well, but this varies between platforms.
If funding your account with a debit card, funds are typically cleared and available in your account within minutes.
Step 3: Decide how much to invest
Shares are what are known as a risk asset. They can go up or down in value. Keep that in mind when deciding how much to invest in Cineworld.
You can reduce your exposure to price volatility by buying more shares over time.
Step 4: Decide whether to buy shares or an ETF
ETFs are similar to mutual funds. They contain shares of a number of different stocks, and can be traded just like individual stocks on the market.
Investing with an ETF is typically less volatile since they are highly diversified and managed.
ETFs with exposure to Cineworld include iShares Core MSCI EAFE ETF (IEFA), Schwab Fundamental International Small Company Index ETF (FNDC), and SPDR(R) Portfolio Developed World ex-US ETF (SPDW).
Step 5: Configure your order
You can use a market order if you just want to invest and aren't concerned about price slippage.
Based on what your broker supports, you may be able to set up orders that are automatically executed under pre-defined market conditions, e.g. when the Cineworld share price hits a certain level.
For investors who believe in Cineworld’s business and take a long view, you could configure an order to buy more shares on a regular basis, e.g. every month, and build your position over time.
Step 6: Place your order
Once you have configured your order, submit it to purchase shares.
Cineworld’s share price can be impacted by how much spare cash people in the countries that they operate have to spend. When money is tight, they tend to stay at home more and cut back on unnecessary luxuries.
A successful summer season — when Hollywood tends to release their biggest movies — can make or break footfall at cinemas.
You can also learn a lot by reading the company’s press releases, annual results, and any news stories that mention them or their competitors.
Cineworld’s main competitors are AMC Entertainment Holdings (NYSE: AMC), and Paramount Global (NASDAQ: PARAA). You may wish to track their performance for a better understanding of how the market is performing as a whole.
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