Buy Nike shares in New Zealand
There have been significant changes in the way investments are made in recent times. The advent of the internet and the ability to invest online has opened up a host of new opportunities for potential investors all over the world.
In the past, a buyer interested in investing in shares would always call his broker and ask him to formally request the purchase of a financial asset for a certain amount. The broker would provide the market price of the asset and confirm the order. As soon as the user confirmed his trading account, the broker's commission and the order period, the broker placed the order on the stock exchange. All this, together with the preceding search for a broker, the execution of the cooperation agreement, which was accompanied by endless visits to bank branches, stock exchanges and company offices, took up a lot of time and effort.
However, the above description stands in stark contrast to what happens with online investing or online trading today.
Physical trading consists of several steps and therefore takes more time. The online trading process is shorter and faster. This is the reason why online trading is becoming increasingly popular and is dominating the market in many countries around the world, including New Zealand.
Nike is one company that has attracted investors with a consistently strong financial performance and an inspiring history of establishment and growth.
See how you can invest in Nike stock in New Zealand.
Nike: the success story
Nike Inc. - is the world's leading designer and marketer of athletic shoes, sportswear and sports accessories. Headquartered in the western Portland suburb of Beaverton, Oregon. The company takes its name from Nike, the goddess of victory in Greek mythology.
Nike owns sub-brands such as Air Jordan and Nike Golf, as well as independent brands such as Converse. Almost all of the company's products are made in workshops in Far East Asia, and the air soles for athletic shoes are made in the company's only factory. The footwear is manufactured in 112 factories in 12 countries, including 49% of the shoes are made in Vietnam, 23% in the PRC and 21% in Indonesia. The company's sportswear is made in 334 factories in 36 countries, of which 27% are made in China, 22% in Vietnam and 10% in Thailand. Each year about 900,000 Nike products are sold around the world. And its superbly filmed commercials have twice won Emmy Awards: in 2000 and 2002.
But the most interesting thing is to know how it all began.
In 1962, Bill Bauerman, an athletics coach at Oregon State University in the US, and Philip Knight, an accounting student and middle-distance runner, came up with the idea of importing shoes. At the time, German brands such as Adidas and Puma still dominated the industry. To gain the trust of future partners, Knight founds BRS (Blue Ribbon Sports) and orders sample shoe models for Oregon. When the models arrive, Knight sends two pairs to Bauerman to distribute to runners at the Oregon Track Set he was coaching at the time. Bauerman becomes a partner and adopts BRS to be able to offer ideas for improving product design and specifications. The idea for the company originated at a joint dinner where Knight and Bauerman shook hands and contributed seed money - just $500 each.
In 1965 they were joined by Jeff Johnson, the brand's first full-time sales rep, who toured stadiums in athletics to promote the shoes in Van. Jeff Johnson suggested the company be renamed Nike and Bauermann took care of the design. In 1971, graphic arts student Caroline Davidson designed the Nike logo, known as 'Swoosh'. Philip Knight wasn't satisfied with it, but he didn't want to spend any more money on his logo. At the time, he had no idea that Swoosh would become the most famous logo in the world.
Much later, the management of the company would thank Caroline by giving her a diamond ring and shares in the company, but at the time the young designer only received $35 for her work.
In 1972, she launched the Moon trainer. The embossed pattern on their sole was created using an ordinary homemade waffle iron. Canada became the first overseas market to which the company's products were launched. In 1974 the shoes began to be exported to Australia. The company collaborated with famous athletes to promote their trainers at the 1972 Olympic Games.
Blue Ribbon Sports opened its first own factory in 1974 in the US state of New Hampshire. In just three years, sales rose from $5 million to $28 million. The expansion included new facilities in Maine, Taiwan and South Korea. Sales of trainers in the Asian market began in 1977 and in European and South American markets in 1978.
In 1981, Nike became the No. 1 trainer brand in the United States and was able to go public. The success of Nike Air in 1983 saw Basketball become the flagship brand in 1984 with the signing of player Michael Jordan and the creation of Nike Air Jordan. In 1988, the brand logo was given a slogan. The name of this slogan; It was "just do it" and many athletes signed contracts with the brand to supply.
In the following years, Nike became the official supplier of many sporting events, opened up the hockey sports product line and also became the official supplier of many sporting events, especially the Tour de France cycling.
In 2003 Nike Inc. bought its competitor Converse Shoes for $305 million. In 2007, Nike bought Umbro for €409 million.
At the end of 2019, the company had a turnover of over $39 billion, a net profit of $4 billion and a market capitalisation of $121 billion. The company employs about 75,000 people from around the world. The brand has more than 60% of the global athletic footwear market.
How to invest in Nike stock in New Zealand?
Nike stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol NKE. It is only possible to invest in Nike stock in New Zealand through a licensed broker.
Choose a broker thoroughly by studying its business reputation, experience and real feedback from experienced traders.
Inquire about the availability of a brokerage license and the amount of commission charged for the services. In terms of internet trading, the role of a broker is actually an online trading platform - an innovative piece of software developed by a brokerage company with the help of which you will perform all transactions in the stock market.
When selecting a broker, familiarize yourself with the platform, paying attention to aspects such as deposit and withdrawal times, the availability of a native language interface, minimum investment requirements, deposit and withdrawal requirements, the availability of necessary trading tools, informativeness, demo account availability and a mobile version.
An important question is the choice of investment method. It will vary depending on your goals, be it to have a passive option for additional income in the future, or to take advantage of the short-term profits of actively trading the market.
In the former case, the dividend investment method will suit you.
A dividend is part of the profits of a company which the owner of a share can make. The more securities an investor has, the more profit the company will give to its shareholder.Companies publish news about dividends and financial results on their corporate websites in a special section for shareholders and investors. You can find out how the dividend is calculated, the frequency of payments and the dividend history.
The dividend amount and record date are recommended by the company's board of directors or supervisory board, and the final decision on dividend payments is approved by the general meeting of shareholders. At this meeting, shareholders may not increase the dividend amount, but they may support the recommendations of the board of directors or supervisory board, which is the most common practice, or reduce or waive dividend payments.
Dividend payments on Nike shares are made on a quarterly basis (4 times a year) with a yield of around one per cent.
An alternative method is trading CFD derivatives.
What is a CFD? CFD is an abbreviation for "Contract for Difference". In short, a CFD is a financial instrument that enables you to speculate in the financial markets without actually buying the underlying assets. When you trade a CFD, you have no physical possession of the underlying instrument, but you benefit from price movements in the relevant market. In addition, the vast majority of CFDs will have built-in leverage.
CFDs suit traders and investors who want to access the world's most important markets on the same platform, where you can analyse and monitor the markets simultaneously. CFDs are also suitable for traders who want access to cheap mortgages and easy access to short selling stocks and other markets.
Many traders and investors may be intimidated by the high leverage in CFD products. Therefore, a sip-loss feature is available on the platform, which automatically closes a trade when a certain transaction limit is reached. If you use this stop loss feature, you will be guaranteed that you will not lose more than a predetermined amount, which is equal to or less than what you have in your account, no matter how much risk you take.
And yet statistics show a large percentage of novice traders who, due to lack of experience, take losses by engaging leverage and ignoring the risks involved. So it is highly recommended to learn thoroughly how all the features of the Platform before you start trading. You can easily do it with the help of a demo account. Read below what a demo account is and how to register on the platform.
How to buy Nike stock in New Zealand?
As we mentioned above, you will need a broker to buy the stock. Once you have chosen a reliable broker and decided on the investment method you will use, you will need to register with an online investment platform. An online investment platform is software provided by a broker that you can use to execute all your investment transactions.
Registering on the platform is not difficult as it is no different from registering on any other website on the internet, be it a social networking site or just an online shop. Visit the website of your chosen broker, find the "register" option and fill in the registration form with your username and email (or mobile phone number). After you click "register", you will receive an automatic email to confirm your registration (or an SMS with an activation code if you provided your phone number). Click on this link, thus confirming the registration on the platform, log in and proceed to the next step - choosing the type of account.
The system will offer two accounts - demo and live. The demo account is a test version of the real account, so you can practice trading on the platform for free. By clicking on the "open demo account" option you will automatically receive a $10000 deposit into your demo account to allow you to carry out test trades. Try to "buy" stocks, connect a stop loss or multiplier. A demo account works exactly like a real account, except you will not risk any real money and you cannot withdraw money from it, of course.
Once you have practiced on the demo account and have decided to trade for real, then fund your real account. Right on the platform you will see a "make a deposit" button and by clicking on it you will see all the funding options. The most popular option is via credit card, but you can also use online payment systems. The minimum deposit amount is only $10 and the minimum withdrawal amount is $2. Withdrawals can be made using the same methods.
How do I start investing in Nike stock in New Zealand?
To summarise, how to start investing in Nike stock in New Zealand.
First, research the market for the brokerage services offered. Choose a broker by researching its reputation based on the reviews of experienced traders, as well as the availability of the necessary documents. Become familiar with the online trading platform offered. Register on the platform. Explore the features of the platform with a demo account. Depositing your account in a way that is comfortable for you. Decide which investment option is best for you. Study the tutorials which can be found on the platform under the tutorials section. Learn to use the indicators for technical analysis - all possible types of indicators are available on the platform and it helps a lot when you know how to use them.
Follow the news - links to the latest relevant news are published on the platform in the "News" section.
A smart approach to investing, self-study, market research and careful analysis will help you to achieve success in investing.