How to buy Nike stock? Nike is one of the world’s leading sports clothing and shoe company. It is the dominant leader in sports apparel, and it is known for its strong brand and instantly recognizable logo. This article will cover how to buy Nike stock online.
If you’re interested in buying Nike stock, it can be done entirely online. While you may already be thinking of investing in Nike stock, this article does not advise you to invest in Nike stock. We will share how you can buy stock in companies, with Nike as an example. Investing in Nike is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of Nike
Nike is a US-based multinational company that is focused on design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and athletic wear. 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. The company is adept at innovation, continuously releasing new products for athletes and consumers.
Nike enjoys a 27% market share in the global athletic footwear market, and the market capitalization is $209.594 billion. Nike 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 announcement 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. Although there was a dip in Nike’s stock price because of the pandemic, the stock has rebounded quickly in a few months.
Buying, selling, and trading Nike shares
Here are the differences between buying, selling, and trading Nike shares.
Buying Nike shares: Buying Nike stock involves finding a broker and placing an order to buy Nike stock. You would want to buy at a lower price to profit if the stock price goes up.
Selling Nike shares: If you already hold Nike stock, you can sell it for a profit if you’d like to. If the price has increased significantly since you purchased it and if the market conditions look favorable for selling, that is, if you expect the price to drop, you can sell the shares and make a profit. Selling Nike stock involves finding a broker and placing an order to sell Nike shares.
Trading Nike shares: Trading Nike stock is the same as buying and selling Nike shares, but it is done over shorter periods. With trading, the goal is to make smaller profits quickly. You also run the risk of making losses rapidly as well. If you’re a new investor, we recommend buying and holding your investment in Nike stock for a more extended period, i.e., six months to a year or more.
Steps to follow before investing in Nike stock
1. Understand how the stock market works
If you want to invest in Nike stock, you should understand how the stock market works. You should not panic when stocks go down or buy in a frenzy when stocks trade high.
2. Research the stock
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using Nike’s products and trust the Nike brand, you can buy the shares of Nike. Before you buy Nike shares, you should take steps to research Nike stock and its fundamentals.
You should look at where Nike gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in Nike’s annual report in the annual letter to shareholders. This letter will share the essential updates in the business. Nike SEC filings, Nike conference call transcripts, Nike quarterly earnings updates, and recent news covering Nike are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in Nike stock.
3. Examine broader market conditions
You should also look 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 shares is a simple process, even for new investors. If you’re thinking of buying Nike stock, you must decide whether you want to buy the stock for the short term or the long term. If you’re going to invest in the short term, you should perform a technical analysis of the stock.
If you want to hold the stock for the longer term, you should perform a fundamental analysis of Nike. You should also keep yourself updated with news and with developments of Nike. Here are the steps you need to follow.
1. Select a broker
To buy Nike stock online, you will need to use an online brokerage platform. Our broker reviews can help you select from the best brokers for stock trading. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade the stocks you’re interested in, in this case Nike stock.
- Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
- Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
- Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments, this should be one of your criteria.
- Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
|Stock Broker||Account Minimum||Commissions||Learn More|
|$0||$0||Visit TD Ameritrade|
2. Open a brokerage account
This is the account in which your shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as Paypal.
4. Decide how many shares you want to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment in Nike as you get more experienced in the stock market. You can also think about investing in fractional shares, which certain brokers offer. Buying a fractional share means you are purchasing a portion of the Nike stock instead of the whole stock. If a share is too pricey, you can opt to buy a fractional share in Nike.
5. Choose your stock order type
All you have to do now is search for the NKE ticker, specify the number of shares of Nike, choose your order type and click on buy. Once you place your order for Nike, your broker will execute the order, and the Nike shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order for Nike at the prevailing market price. There are no price parameter restrictions on this order. You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a small price fluctuation does not matter to you, you should place a market order for Nike. If you place a market order for Nike “after hours,” when the markets have closed for the day, your trade will get executed the next day at the prevailing market price.
The limit order instructs your broker to place an order when the Nike stock reaches a certain price point. It gives you control over the price at which your trade is executed. For example, if Nike stock is trading at $200, but you value Nike at $180, the limit order tells your broker to wait till the price of Nike stock reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position periodically
Once you have purchased Nike stock, you should monitor the Nike stock according to your investment strategy. You should follow the quarterly and the annual results of Nike and the news and developments in Nike.
Investing always comes with certain risks. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker. To recap, you can buy Nike stock by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order for Nike stock, and reviewing your position periodically.