Nike is an international athletic footwear and apparel company based in USA. The company has observed good growth and has a relatively low price which attracts many investors to purchase its stock. It is a good option to buy Nike stock. Nike stock can be purchased directly from the company or you can buy through a brokerage firm.
Guidelines to Buy Nike Stock
You go through Nike’s annual report to learn about how the company stock performed over the year.
- You can also know about the company’s performance by reviewing its SEC filings and minutes from stock holder meetings.
- You have a look at Nike stock performance chart for a last few weeks or few months, it will provide you an insight of its current performance.
- You can watch stock ticker for few days and can even set up text alerts or notifications.
- Once you have enough research and you feel it is worth investing, you can buy Nike shares.
- Decide how many shares you would like to buy based on how much money you want to invest.
Buy Nike Stock through Direct Investment
- You can buy Nike shares directly through a direct stock purchase plan (DSPP). You have to pay initial set-up fees of $10. It requires minimum $500 initial investment. There is a maximum limit of $250,000 to invest in Nike share through DSPP.
- You can also set up an ongoing automatic investment of at least $50 each month. The minimum $50 limit doesn’t apply once your investment reaches the $500 threshold.
- You have to fill up an enrolment form to make the direct purchase. You may have to specify dividend payment option. You can choose cash payment, dividend payment reinvestment or partial reinvestment. You also need to provide bank account details for fund withdrawal.
Buy Nike Stock through a Brokerage Firm
- You create your investment profile based on the money you want to invest, how you plan to trade and how much broker support you need.
- If you want to trade frequently and you are not in need of much guidance or support, you can opt for online brokers. If you just want to buy few Nike shares and want to reinvest dividends, you also can choose an online discount broker.
- With full service broker, you don’t need to manage your investments, but you turn up paying more fees. If you have plans to expand your portfolio over time, or want to make complex investments, full-service broker is recommended.
- Decide on how much you would like to invest. Most online brokers don’t put a limit on minimum investment. You can sign up your account and add little fund to it and then keep adding over time.
- You have to pay fees on every purchase, so it is better you save some money and then make single purchase after some time.
- There are different types of orders for buying stock. The easiest stock buying is a limit order. You place a price limit to make an entry point. When the share price reaches the price specified by you, the order will be executed. You can buy shares at current price too with market order.
- If you are having an online broker, you can place the order yourself. If you are using services of full-services brokerage, you have to make a call or send an email to place the order.
Looking at its performance, Nike can be a good stock to buy. The company pays dividends on the share and income investors can get good payouts.
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