If you’ve ever wondered how to buy Nike stock, the first thing you need to do is create an account with a brokerage firm. Nike is one of the world’s leading sports clothing and shoe companies. It is the dominant leader in sports apparel, and it is known for its strong brand and instantly recognizable logo.
If you’re thinking of investing in Nike, you can buy Nike stock on the New York Stock Exchange. The ticker symbol of the company is “NKE.” You can buy this stock through a brokerage firm or an online broker. This article does not recommend that you buy Nike stock, simply that you have the information to do so if this interests you. Let’s dive right into it.
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Overview of Nike
Nike is a US-based multinational company focused on design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and athletic wear. The company also provides performance apparel for teams in leagues, schools, and colleges. Nike sells its products through its wholesale operations to retail accounts, independent distributors of Nike branded products, and worldwide operating retail stores.
Nike is adept at innovation, continuously releasing new products for athletes and consumers. It is the most valuable brand among sports businesses, valued at $32 billion in 2020. The company is fantastic at marketing and sponsors high-profile athletes and sports teams worldwide to market and sell its products.
Nike enjoys a 27% market share in the global athletic footwear market, and the market capitalization is $209.594 billion. The company is listed on the NASDAQ, NYSE stock exchanges under the ticker symbol NKE.
If you’re thinking of investing in Nike, you should look at the stock’s recent performance and its potential for future growth. You should also look at future product announcements, and other impacts on the markets Nike operates in to analyze if any information could impact Nike’s stock adversely.
Nike’s stock performance in recent years
Nike stock has been performing well in the last five years. In April 2016, Nike stock was trading at $61.59, and the current price as of April 2021 is $132.99.
Steps to follow before investing in Nike stock
1. Understand how the stock market works
If you want to invest in Nike stock, you need to know how the stock market works. The stock market is made up of buyers and sellers who are constantly searching for stocks that will increase in value so they can sell them at a higher price than what they bought them for. These buyers and sellers represent all different people, ranging from financial institutions to retired individuals looking to secure their retirement.
2. Decide how much money you are willing to risk
Investing in the stock market can be risky, so you need to decide how much money you are willing to risk before putting your hard-earned cash into Nike stock. If you want a sure return on your investment, then buying stocks that pay dividends is an excellent way to go about it. However, if you are confident that Nike will increase in value within the next few weeks and months and don’t want to be bothered with cash dividends, you can invest directly into stocks like Nike.
3. Set a goal for your investment
When investing in Nike stock, you also need to set a realistic goal for yourself. If you are sure about the amount of money you want to make with your investment, it is a good idea to figure out a timeline. Setting a goal will also help with making a plan to achieve that goal.
4. Research the stock
Before buying Nike stock to make a profit, you need to research Nike’s fundamentals. Nike’s annual reports, SEC filings, Nike’s conference call transcripts, quarterly earnings updates, and recent news covering Nike are good sources of information to analyze the company. You need to know whether or not Nike stock is currently trading at its highest value. If you don’t, then it might be a good decision to wait and buy during a period when the company’s stock price is down.
You can also compare Nike’s current annual earnings with its expected future growth to decide if buying into the company is worth your time. If you are confident that the company will grow in the future, then buying into Nike stock at an inflated price right now might not be a good idea because it will lose its value in due time, and you’ll end up losing money instead of gaining it.
Look at the stock’s price and compare it with its recent performance to determine if it is trading at its highest value. If so, buy when it’s trending downward so you can get it at a lower price. Nike has a solid track record for increasing its value in the market. Also, Nike products are a necessity for athletes worldwide and the company’s growth over the past five years is a good indication of future performance.
Examine broader market conditions
It would be best if you also looked at broader market conditions before you buy Nike stock. If it is a bull market, the Nike share price will go up, and it would make sense to buy Nike stock immediately. If it is a bear market, the Nike share price will go down, and it might be better to wait to buy at a lower price.
How to buy Nike stock – a step by step guide
Buying Nike stock is a simple process, but it can be complicated if you don’t know your way around the market. Our investment app reviews will give you an idea of the best brokers you can use to buy Nike stock:
1. Select a broker
You have several options for brokers, but these factors should determine the best one for you.
Stocks available for trading: You need to make sure that the broker has the stock you are interested in trading available for purchase.
Commissions: The cost of buying Nike stock is important because it factors in your total investment return. Find out how much commissions are before opening an account with a particular broker.
Customer service responsiveness: Even if you don’t need any help from a broker, you might need to call for customer service from time to time. Look for a broker that is responsive and answers questions as quickly as possible.
Ease of use: You need a broker that is easy to navigate and understand. It shouldn’t take long before you can do whatever you want with your account. There should be no confusion about how to use the broker to buy Nike stock.
Account fees: Some brokers have a monthly fee attached to your account. Before opening an account with a particular broker, you need to know what they are and how much they will cost you. Other fees you might have to pay include fees for transferring funds, closing an account, and other miscellaneous fees.
Payment methods: Different brokers accept different forms of payment. If you plan to use a specific method, then make sure that the broker accepts it before opening an account with them to buy Nike stock.
Track record: If the broker has been around for a while, they are more likely to be reliable. Make sure that you look at their track record before opening an account with them to buy Nike stock.
2. Sign up for a brokerage account
Once you have chosen a broker, open an account with them by submitting personal information and financial data before agreeing to the terms and conditions.
3. Fund your brokerage account
After you have opened an account, deposit some money into it to use for buying Nike stock. You might have to wait a while before the funds clear, depending on what type of account you have and how long the company takes to process transactions and withdrawals.
4. Decide how many shares of Nike you want to buy
Based on the Nike stock price and your budget, decide how many shares you want to buy. Make sure that you have enough money in your account to cover the purchase.
5. Select a method for buying Nike shares
Once your money is available in your account, you can buy Nike stock by entering an order through your online trading platform. You can choose from market orders or limit orders when it comes to placing your Nike stock order.
Make sure that you place a limit or stop-loss order so that the trade doesn’t go awry. A market order will be executed right away, which is risky. A limit order sets the maximum price you’re willing to pay for Nike stock, and a stop-loss order sets the minimum price you’re willing to sell for.
6. Review your position periodically
You must keep an eye on your position and the Nike stock price. Review it periodically to make sure that nothing unexpected has happened, and your position is still intact. Follow the quarterly and annual financial reports for Nike to stay up-to-date on what is going on.
Investing in Nike stock is a solid choice for anyone who wants to have some diversification in their portfolio. The Nike stock price has increased considerably over the years, which means that you can potentially make money off of it. Take your time when buying Nike stock so that you are well-informed about how to do it correctly.
Investing comes with risks, and keep in mind that you might lose money. When you buy Nike stock, the market price may rise or fall before you can sell it. Keep this in mind so that you can protect your investment. Also, watch out for fees and minimum investments, especially if you want to start small and grow your portfolio gradually over time.