THG Plc (LON: THG), also known as The Hut Group, is a British e-commerce company. They operate more than 100 websites that sell beauty and wellness products to customers in countries around the world.
The company has experienced rapid growth through acquiring and refurbishing existing e-commerce stores and brands.
This is your complete step-by-step guide to investing in THG shares.
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Step 1: Sign up with a stockbroker
THG is listed on the London Stock Exchange, so if you want to buy shares in the company, your broker must have access to this market.
Things to consider before deciding on a broker include their commission (if any), what markets and tradable assets are available, whether or not they support fractional share investments, what their foreign exchange fee is when buying on international markets, as well as the general usability of their trading platform.
Step 2: Funding your account
You'll need to have funds in your account before you can buy THG shares.
This can be done with a bank transfer, a debit card, or, depending on the broker, a credit card.
Step 3: Decide how much to allocate
Since shares are a volatile asset that can go up or down in value, you should only invest what you can afford.
Step 4: Decide whether to buy shares or ETF
ETFs are a type of passive investment with exposure to a basket of assets, with allocations managed by professionals.
Being diversified, ETFs are regarded as less risky compared to investing in a single share.
Step 5: Set up an order
A market order is the easiest type of order. With a market order, your broker will buy shares in THG at the next available market price. There can be a slight difference in price between quoted and actual purchase price due to market conditions.
If you want to invest strategically, you might configure orders to execute automatically under specific conditions. For example, you could “buy the dip” when the share price hits a certain level. On the other hand, you could configure an order to sell at a certain price in order to protect your profits.
E-commerce is incredibly competitive and constantly evolving, so it’s a good idea to make sure that you stay on top of important changes that may affect The Hut Group.
Like any online store, THG is susceptible to algorithmic and policy changes at the platforms upon which they depend for traffic.
THG operate many different stores, making them a more diversified investment. However, running so many different stores is not an easy task. On one side, THG competes with incumbents like Amazon (NASDAQ: AMZN), eBay (NASDAQ: EBAY), Mercado Libre (NASDAQ: MELI), and Jumia (NYSE: JMIA). On the other, platforms like Shopify (NYSE: SHOP) have enabled hundreds of thousands of new stores to sell online.
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