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Open a brokerage account. Decide whether you want a personal broker to handle your purchase (e.g. Edward Jones), or if you want a self-service account (e.g. etrade.com). Some brokerage firms, such as Charles Schwab and Merrill Lynch, offer both personal and online trading options. To open an account, you will need your name, address, Social Security or Tax ID Number, date of birth and employer's name and address. To purchase Netflix stock immediately, you will need a bank account number.
Examine the Netflix balance sheet to determine the company's profitability. While there are several ways to look at profitability, the "ROA" (Return on Assets) is the simplest. ROA equals net income divided by total assets. As of Q1 2009, the Netflix ROA was 14.39%. Analysts do not recommend anything with an ROA of less than 5%. Visit Netflix and study its detailed "Investor Relations" section (linked below). Since Netflix is in the home entertainment industry, you need to establish
whether that industry has peaked or will continue to grow. As mentioned in the introduction, Netflix is enjoying a growth period. However, this trend could change when you conduct your research.
Specify limits on your brokerage account for the Netflix stock. This is known as a "buy limit," and ensures that you do not pay too much for the stock. For example, if you research and plan to purchase the Netflix stock at $40 per share, the stock could begin to move fast, resulting in a price of $50 per share. If you set a buy limit at $42, then no stock purchases will take place at higher than that price.
Confirm that the purchase information you provided to your broker or online is accurate. Make certain the ticker symbol is accurate, and that you did not inadvertently add an extra zero to the number of shares you want to purchase.
Place your order once you have confirmed all of the information is accurate.