By Brooke Blaine
In honor of Nike’s 30th-anniversary ad featuring Colin Kaepernick. I have decided to discuss the purchase of stocks. Stocks are a great way to invest money, there are many ways to profit from purchasing stocks. There is day trading, taking advantage of stock options (calls and puts), and long-term trading. The choice is yours and depends on your commitment to watching your investment. Day traders buy and trade in the same day, stock options are rather complicated, but can be a great way of making money quick. You do have to understand calls and puts and actively watch the market to take advantage of stock options. For those that aren’t going to watch their shares and aren’t looking for a quick return, I recommend long-term stock investments.
Long-term investments work with new stable companies and established companies. If you are going to delve into long-term stock investment, I recommend that you use a DSP (direct stock purchase) method. This means that you are going to purchase your stock thru the administrator of the stock. No broker needed, you purchase directly from the group who is in charge of the stocks. In my opinion, this is one of the best ways to purchase stock. By using this method you will avoid additional fees on top, of the fees the administrator already charges to acquire the stock. When purchasing thru a broker, you will pay the administrators fees and the brokers fees.
Anyone you speak to about investing in stocks will recommend that you purchase multiple shares from different companies and you have a diversified portfolio. A diversified portfolio means that you should spread your money amongst different companies. The key here is that the companies should also be in different industries. When the oil industry takes a hit, hopefully, the transportation or food industry doesn’t. Yes, you can purchase shares from multiple companies thru this method, however, most of these companies don’t sell portfolios that have already been diversified. You will have to create your own. The company I am going to speak about today does administer the shares for many companies. You can create a diversified portfolio on your own. You have the option to choose which stocks you would like to purchase when you set up your account.
Nike stocks are available thru direct stock purchase from Computershare. You must make a minimum investment of $500, you can do this by one-time purchase or scheduled deposits, minimum of $50 monthly over a 10 month period. This also does have a minimum of 1 share. So in the case of Nike, your initial deposit will have to be over $50, as the stock is currently trading at $ 79.92 as of the close of market on 09/05/18.
Every plan has fees, every purchase has a cost. There will definitely be fees associated with this purchase. The fees will be lower than almost any broker you choose to purchase from. Fees tend to sometimes reduce based on the amounts investing. However, with these type of companies, the fees stay constant. Generally, you will see fees for the initial setup fee, per share fee, recurring purchase, dividend reinvestment, and many others. Dividends are payouts that companies will pay to shareholders based on the companies profit. Many investors choose to reinvest these dividends to increase the number of shares they own. Dividend reinvestment usually allows for the purchase of partial shares. The key is these fees are higher when dealing with a broker.
So if you want to support Nike, visit Computershare website and set up your account today. If you don’t own any other stocks, I recommend purchasing 4 or 5 others as well. If you’re not going to pay attention to the stocks all the time, choose firm companies in different industries and let them sit. Thru this purchasing method, you have to keep an eye on your stocks. You don’t have a broker to make sure your investment is profitable on your behalf. This article is not the end all be all and does not cover all you need to know, only key points. Please, be sure to complete your research and look into different options and methods to decide what will work for your unique situation. Consultation with a financial advisor is always recommended.
Blaine La/Car Associates 