I know you like Nike shoes. Would you go a step further and invest your money in Nike stock?
The good news is that today, unlike in the past, you can buy shares of companies like Nike exclusively online. All you need is a broker or access to the New York Stock Exchange.
Interestingly, Nike’s stock is resilient because the company has weathered several economic downturns and remains a strong company. To become a shareholder, you must know how to invest in Nike stock.
This article explains how to buy company stock, using Nike as an example.
What should you look for before buying Nike stock?
Before you invest in Nike stock, you should consider the following information:
1. Research Nike stock
Before you invest in Nike stock, you should first do your research.
Find out about the company’s history before you buy the stock. Find out information about Nike’s management team, revenue, net income, profits, challenges, and more.
2. Find the Nike stock that fits your portfolio
Nike is a well-known brand, but its offerings may not be for everyone.
Investors consider their current assets, future goals, risk tolerance, and everything else before choosing the right stock.
3 Set a budget for Nike stock
Setting a budget for Nike stock is important, especially if you’re a first-time investor.
Investing in the stock market is usually risky if you think you’ll need the money in the next five years. This is true for both stock funds and individual stocks like Nike.
Before you invest in Nike, make sure you have enough money to weather the storms.
In the next section, we’ll examine how to invest in Nike stock.
5 Steps to Buying Nike Stock
You’ve decided to buy Nike stock, and we’re glad you did. Now it’s time to learn how to buy Nike stock.
Investing in Nike stock is similar to that of other companies.
1. Find a good online broker
Not all brokers have access to the NYSE. Without this access, you will not be able to buy or invest in Nike stock.
Before choosing a broker, consider their fees, trading platform, available markets, and ease of opening an account.
2. Open a brokerage account
You must open an account after locating an internet broker. It is similar to a regular bank account and is managed entirely online. You use this account to hold your shares when you buy Nike stock.
3. Deposit money into your account
Because you need money to buy Nike stock, you must deposit it into your trading account.
An easier way to invest in Nike stock is to send money directly to your broker. This is usually quick and easy, even easier than opening a brokerage account.
4. Buy Nike Stock
You now have your hands full, and the last step is to buy. You log into your online broker, search for the Nike stock, enter the number of shares you want to buy, and click the buy button; then, the stock purchase begins. In stock market parlance, this means you enter a buy order.
Tip: You can choose between different order types when you place an order. With a market order, you buy at the current market price, while with a limit order, you can specify the exact price at which you want to buy the stock.
5. Check your Nike stock regularly
The final part of buying Nike stock is monitoring your investment. Essentially, this is monitoring your investment strategy.
If you have been buying Nike stock for a long time, you can attend the annual general meeting and get all the news and information about the company.
If you plan to sell shares soon after the price rises, you can use other position management tools. You can set a target price at which you want to sell the stock for a profit, or you can set a stop loss price at which you want to sell the stock to avoid further losses.
Should You Invest in Nike stock?
Nike stock is classified as a blue chip stock, making it a solid choice in the market. However, the stock depends on the company’s financial health, so anyone willing to accept potential losses in hopes of positive growth should consider Nike.
If you buy Nike stock directly, you’ll need to make a minimum investment of $500. One way around this is to make regular deposits of $50 through Computershare.
Nike is a company worth investing in. While not all company stocks rise over time, as some companies go bankrupt and their shares are worthless, companies like Nike are unlikely to fall into this category.
So before you invest in Nike stock, ensure the company has this kind of equity value. Also, secure your money before you invest.
So how can you invest in Nike stock? Follow these steps:
- Find a broker.
- Open an account.
- Top up your account.
- Buy shares.
- Check your position.