The modern world of investing has changed considerably due to new innovations, moving away from the classic version of investing which involves visiting a stock exchange, hiring a stockbroker, subsequent visits to company offices, official requests for information on the financial situation of companies and stock quotes, the execution of a multitude of documents and so on. You also don't have to be a big investor and have a huge capital to start your activities in the stock market.

The Internet option of investing has greatly simplified the investor-broker-company interaction scheme by automating many processes and putting all the necessary information on the Internet.Now you can invest in any, even very large company, with a minimum amount of a few dollars and an Internet connection, from anywhere in the world.

Today we will look at investing in Nike shares in the UAE.

Nike is an American manufacturer of athletic footwear, apparel and equipment and has been a market leader for many decades. Around 95% of basketball shoes in the US are owned by Nike. It employs around 70,000 people. Nike is valued at $27.5bn - more expensive than Louis Vuitton.

Founded in the United States in 1964, Nike was then still called Blue Ribbon Sports (RBS). They were athletes, and decided to design a comfortable pair of shoes for professional running themselves. The firm's first deal was to buy 300 pairs of trainers from the little-known brand Onitsuka Tiger (now ASICS) for resale in the United States. The first batch was quickly sold out.

In 1964, the fledgling company sold 1,300 pairs of Japanese trainers. A few years later the firm started ordering shoes of its own design to be made-to-order. Bauermann's success came in 1968 with the launch of the Cortez brand which sold well.

The first pair of Nike trainers appeared in 1971 - they were trainers with a waffle sole. Remarkably, the sole was obtained using a conventional waffle iron. Bauermann, aiming to improve the grip of the sole, used his wife's waffle iron to create a fluted trainer sole. In 1974, the know-how was patented and the world-famous waffle iron is still preserved in the company museum.   

In 1971 the business brought the founders $1 million. In 1977 the figure rose to $25 million. In 2016 the company made $3 billion.

In 1978, the company's name was changed to Nike, Inc. The name comes from the Greek goddess of victory, Nike.

Nike's official website in the UAE
Nike's official website in the UAE

Today Nike, Inc. has factories in 55 countries, most of them in Asia. The shops are located almost on all continents. Production is almost entirely in the hands of contractors. The company itself is engaged in design development and is the owner of outlets and shopping centres NikeTown.

Apart from its own brand, Nike has a number of other brands in its arsenal, the most famous of which are Air Jordan, Air Force 1 and others. Since 2017, Nike has owned two key apparel manufacturing subsidiaries, Converse Inc. and Hurley International. In 2019, Forbes magazine named Nike the most expensive sports brand in the world.

For investors, Nike shares are of particular interest. Today, thanks to online trading, anyone can start earning from NKE securities.

Let's take a closer look at how to invest in Nike stock in the UAE.

Investment information about Nike on the platform
Investment information about Nike on the platform

How to invest in Nike shares in the UAE?

Nike shares were listed on the NYSE in 1990. They received the ticker symbol NKE. A total of 1,668,000,000 units were issued. Some of them are owned by institutional investors and individuals. And the other part is in free float. This means that anyone can sell and buy Nike stock.

To buy Nike stock, you will need a broker - an official licensed intermediary who works with the shares of Nike.

The choice of brokerage companies in the UAE stock market is extremely large. To choose the best broker, pay attention to the license, reviews of this brokerage company from market experts, and experience in the market. Every brokerage company offers its clients various competitive conditions for trading: minimum spreads, a large number of trading instruments, additional services and bonuses. Their combination is an important factor to choose from.

Depending on the amount you invest and your goals, there are different investment options.

The dividend method is more suitable for investors who have significant capital and are aiming for stable, passive income and security of funds. Generally, this method of investing does not produce quick returns, and investors using this method rely on the long term.

Nike pays dividends 4 times a year (1 per quarter). In 2020, security holders received 0.26% to 0.28% for Nike shares. Their price at that time was $88-95 (in different quarters).

Nike is represented on the platform under the ticker NKE
Nike is represented on the platform under the ticker NKE

Trading in derivatives, so-called CFDs, is particularly popular.

With CFDs you don't get ownership of real assets. Rather, you receive the difference in the price of the underlying asset between the opening and closing of the contract. This closing or expiry date is not fixed, which makes CFDs different from other forms of derivatives such as futures. Your contract can be either short term or long term.

One of the advantages of trading CFDs is that you can speculate on price movements in either direction, whether up or down. The profit or loss you make will depend on whether or not your forecast comes true. Remember that trading with leverage will increase your profits, but will result in a loss of your investment if the market moves in the opposite direction. Participating in CFD trading is speculative and can lead to significant losses that could exceed your investment. The potential losses can, in theory, be unlimited.

Before you try your hand, you need to understand how this CFD works. If you are new to CFD trading, practice with a demo account and start with an amount that you cannot lose easily.

We will tell you what a demo account is and how to open one below.

Option to buy shares on the platform
Option to buy shares on the platform

How to buy Nike shares in the UAE?

All stock market transactions online will be available to you thanks to an investment platform. An online trading platform is the software provided to you by your chosen broker. By registering on the online trading platform, you will be able to buy and sell shares as well as have access to complete and comprehensive information on the current state of the stock market.

How to register on the platform?

Registering on the online trading platform is a simple, straightforward and time-efficient procedure. You just need to go to the main page of the brokerage company website, click the "register" button and fill in all the fields in the form that opens. You do not need to enter more detailed data than your username and e-mail address, and sometimes a mobile phone number to get started. Later on, when you withdraw money from your account, you will have to undergo more complex verification for security reasons. In such cases, the system will already ask for scanned copies of your identification documents, or perhaps other verification options such as photo or video verification.

Platform registration form
Platform registration form

How to open a demo account?

The online trading platform is a powerful software with many technical options for market analysis, advanced trading features, information summaries, and so on. To make sure you don't get lost in all the features and charts, the system offers you a demo account to get you started.

A demo account is an exact copy of a real account, but only a test one. Respectively, the amount of money on the account, which the system automatically credits, is also fictitious, and serves only for training. Make sure you have a demo account so you can test the platform, see how it works and make sure you understand the options. Because a demo account "works" just like a real one, you will be able to make test trades and thus see exactly how it works.

By using a demo account you will avoid any mistakes that might occur while you are still new to online trading. You will not risk your money.

You can use the demo account for as long as you like and you can renew the test amount on the account.

But as our main goal is still to make profit, sooner or later we will have to start with a real account and real money.

Select an account to work with
Select an account to work with

How to open a real account?

A real account is activated by funding it with an amount no smaller than the minimum required by the system. The minimum deposit requirement is normally just $10, enabling those without much initial capital to begin online trading.

You can deposit your account with a bank card or via payment systems. You will find a list of available funding options by clicking on the "fund deposit" button on the platform. You can withdraw money from your account using the same methods.

Top up your account online
Top up your account online

Prospects for investing in Nike shares

The share price of Nike, Inc. at the date of this writing stands at $133.42, up 56.52% from the same period last year.

The analysts' overall assessment is positive, with an annual earnings per share growth potential of at least 34% over the next five years for Nike.

Over the past five years, Nike shares have risen by almost 200%.

One estimate puts the global sportswear market at $167bn in 2018 and is expected to reach $248bn by 2026.

The company promises further market expansion and prosperity. Investing in Nike in the UAE is a great idea that is now available to everyone. As the company slogan says, just do it!

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