How to Invest in Telecommunication Stocks

By Jason Gordon

  • Overview

    From the Greek for "far away," tele indicates distance. Together with communication, it is clear that telecommunication refers to communication over a distance. The modern term refers to all assisted transmission of signals (voice or data) for the purpose of communication. This includes telephones, internet. mobiles, radio and television. Telecommunications is an industry that continues to grow as new technologies develop and lesser developed countries modernize their systems. Here in an overview on investing in this sector.
    Telecommunication towers

    • Step 1

      Call your broker or log in to your online brokerage account. Popular brokerages include E-Trade, TD Ameritrade, Fidelity and Charles Schwab. See the Resources section for a link.

    • Step 2

      Research the telecommunication sector to find the companies you are interested in. Read investment publications like the "Wall Street Journal" or "Forbes" to gauge analyst opinions and review company financial statements. For example, you might choose to invest in one the largest telecommunication companies, AT&T.

    • Step 3

      Navigate to the "Trade" page on your online brokerage account and enter the ticker symbol "ATT." Check the current pricing and enter the quantity of shares that you are willing to purchase. Alternatively, you can call and place your order through a live broker.

    • Step 4

      Click "Trade" or "Submit" to place your market order. Depending on trade volume, the order will execute from seconds to several minutes.

    • Step 5

      Receive confirmation from your brokerage on your purchase of AT&T telecommunication stock. See the Tips Section for other telecommunication stocks.
    • Skill: Moderate
    • Tip: Some other examples of large telecommunication companies are Qwest, Sprint Nextel, Alcatel-Lucent, Motorola, Tellabs and Google.

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