Many investors have purchased Nike stock because of the low price and solid growth rate.The athletic footwear company has an internationally recognized brand.Nike is a good stock to buy as a beginning investor or to add to an existing portfolio.You can buy Nike stock directly from the company or through a broker.
Step 1: Nike has an annual report.
The letter to the shareholders summarizes the stock's performance over the year.The narrative context from this letter will help you understand the data in the rest of the report.Nike's annual report can be accessed at investors.nike.com/investors/news-events-and-reports.If you want to go back a few years with your research, there are links to archives.Some of the reports Nike is required to file with the SEC give you insight into the company's assets and liabilities.
Step 2: SEC filing and other recent news can be found here.
You can learn more about Nike's performance beyond the annual report by looking at recent press releases and minutes from stock holder meetings.You can find all of Nike's reports and other investor resources online.
Step 3: For a while, watch Nike stock.
Watching Nike stock for a few weeks or even months will give you a better idea of what to expect.This will let you know how much stock you want to buy.The stock ticker should be checked every few days.You may want to keep an eye on the stock on your phone.
Step 4: Consider the qualitative information about Nike.
Look at news articles about the product and the company's executives to get the fullest picture of a company.Find out how the goals and reputation of Nike's leading officers affect the bottom line.Since Nike sells athletic footwear and apparel, there are new lines being launched.New lines and patented innovations improve Nike's market position.Adidas and Reebok are athletic footwear and apparel companies.An endorsement contract with a promising athlete could bode well for Nike's future.If any of Nike's existing contracts are injured or poorly performing, this could spell trouble.
Step 5: Invest according to your investment strategy.
It's time to put the information together after you've finished your research.You should be prepared to reasonably predict the company's future performance based on the past performance and goals of the management.Determine how much money you want to invest by looking at the current price of the stock.It's not a good idea to put all your eggs in one basket.It's a good idea to start small if you're a starting investor.Nike pays dividends so it is a good stock for beginners.
Step 6: You can create an investment profile.
You can use your investment style to narrow down the firms that will work best for you.How much money you want to invest, how often you plan to trade, and how much investor support you have from your broker are some of the factors that can be used to build a profile.If you plan to trade frequently, online brokers are the best option.If you want a personal relationship with the individual broker, you'll want to make fewer trades.
Step 7: Take a look at possible brokers.
You probably don't need a full-service broker if you just want to buy some shares of Nike stock.An online discount broker has low fees.You don't have to do much in terms of managing your investments if you use a broker.This comes with costs, but your broker will manage your investments for you.If you plan on expanding your portfolio over time, or buying more complex investments, you may want a full-service broker who will provide more hands-on attention.Your broker's fees will be higher if you get more hands-on management and personal attention.
Step 8: How much do you want to invest?
Many online brokers do not require a minimum initial investment.You can open an account with a small amount of money and add to it over time.You'll pay a fee for each stock purchase, so it may be better for you to save the money you would spend buying Nike stock in a savings account for a few months or a year, and then make a single purchase.
Step 9: Pick the type of order you want.
You don't have to be familiar with all the different types of orders to buy Nike stock.You can place a limit order for the amount you want.A limit order is a request to buy a certain amount of shares.Take the current price of Nike and calculate the number of shares you can buy at that price for the total amount of money you plan to invest.For example, if Nike is currently trading at $50 a share, and you plan to invest $2,000 in Nike stock, you could place a limit order for 40 shares.If you place a market order, you want to buy stock as soon as possible at the best price.You would let your broker know how much you want to spend.
Step 10: Send your order to your broker.
If you are using an online broker, you can just wait for the order to be filled and execute it yourself.Give your broker the details of your order if you have a full-service firm.You're an investor in Nike.You can see how your investment is doing by watching the stock's performance.Don't panic and sell in response to a short-term loss because stocks go up and down from day to day.
Step 11: Fees and buying requirements should be checked.
You can buy stock directly from the company through Nike's direct stock purchase plan.The initial set-up fee is $10 and the initial investment is $500.You can set up an automatic investment of at least $50 a month.If you want, you can lower the automatic investment amount after you reach the $500 threshold.
Step 12: Decide how much you want to invest.
The maximum amount of money you can invest in Nike is $250,000.You must go through a broker if you want to spend more than that.You have to meet the minimum investment requirements.If you make the initial $500 investment, you can set them up for any amount you want.It is possible to set up 10 investments of $50 to meet that threshold.
Step 13: You must complete the form.
You have to fill out a form with personal information for yourself and anyone else who will be holding the stock with you.Should you invest your dividends?Regular dividends are paid by Nike stock.You can choose between cash payment, reinvestment, or partial reinvestment.If you don't check a box on the form, you will be automatically enroll in the program.Provide bank account information so your investment funds can be withdrawn.
Step 14: You can enroll in Nike's plan.
You can change your preferences later if you didn't enroll in Nike's DRIP when you bought your stock.You can reach out to Nike's investor relations or talk to your broker.