How to Buy Railroad Stock

by Glenna Parks ; Updated April 19, 2017

The stock market is flush with investment opportunities but shouldn't be viewed as a get-rich-quick scheme. Investing in railroad stock as part of a long-term approach can be an effective way to create a balanced portfolio.

How to Buy Railroad Stock

Step 1

Research the publicly traded railroads and select which companies in which to invest. Class 1 railroads Burlington Northern Santa Fe Railway (NYSE: BNI), CSX Corporation (NYSE: CSX) and Union Pacific (NYSE: UNP) are available for public trade, among other major competitors in the industry. Many short line railroads are fully owned by holding companies, but some, like Freightcar America, Inc. (NasdaqGS: RAIL), invite you to invest.

Step 2

Contact a broker or sign up for a self-trading stock website. Discuss the implications of investing in an industry like railroads.

Step 3

Invest only the money you can afford to lose. Rail is generally regarded as a steady market, especially as consumers and worldwide businesses become more fuel conscious.

Step 4

Track your stocks to consider adjusting your positions in railroad shares.

Items you will need

  • Computer
  • Broker

About the Author

Glenna Parks' work has appeared in "Missouri Life" magazine, "Marshall Democrat-News," "Central Collegian," and the Union Pacific and Amtrak employee publications, "BNSF Today" and "BNSF Railway." Parks received a Bachelor of Arts in communications from Central Methodist University in Fayette, Mo., in 2007.

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