How to Buy Nokia stock (NOK)

Introduction

Nokia is quite a popular telecommunications, information technology, and consumer electronics company that has withstood the test of time, given it was established over 150 years ago. Its ability to adapt to change is among the many reasons that has made it very successful. Therefore, investing in Nokia’s stock (NOK) gives you a chance to partake in the company’s profits. 

Highlights and Key Takeaways

• Nokia’s stock is an ideal investment choice, which can earn you good returns.

• NOK performance can be monitored by following the company’s news, reading charts, and assessing its financials, among others.

• You can buy NOK stock through an online brokerage account.

Understanding Nokia As an Investment

Why Invest in Nokia?

Nokia is one of the investment options that you should contemplate buying. This is due to its competitive positioning in the telecommunications industry. The company also has a significant market share, expansive product and service offerings, and wide geographical reach.

• By operating businesses that focus on different sectors of the industry, the NOK stock enjoys many cross-selling opportunities and superior customer loyalty.

• Nokia has also shown a stable performance in recent years. For example, its net sales increased from 21.85 billion euros in 2020 to 22.2 billion euros in 2021, with the market capitalization standing at $21.15 billion. 

• Nokia recorded substantial growth in the year 2022, earning 24.9 billion euros in sales and a net profit of over 4.26 billion euros. It is expected that Nokia’s full year 2024 comparable operating profit will be between EUR 2.3 billion to 2.9 billion.  

• Moreover, the company targets to attain an operating margin of 13% by 2026 and looks forward to more opportunities that will increase this figure beyond 2026.

• Another reason to invest is that NOK stock is the company’s attractive share price, which is below $4 per piece, meaning incredibly cheap. This allows you to purchase many shares and enjoy substantial gains if the price shoots up. 

Risks Associated With Investing in Nokia

Investing in Nokia has its fair share of risks. The telecommunication market is very competitive. This presents significant challenges for Nokia to maintain a strong market position.

• Fundamental challenges are also a concern. Investors could look for other options if the company starts to perform poorly or accrue unsustainable debts. Consequently, NOK’s value may experience a sharp decrease, causing you to suffer substantial losses.

• Additionally, negative market sentiment or analyst downgrades can also affect investor confidence and cause the stock’s value to decrease.

How To Buy Nokia Stock

Choosing a Brokerage

The first step to learning how to buy Nokia stock is acquiring a brokerage account. A brokerage account will enable you to buy and sell various kinds of assets. However, certain factors must be considered to find the ideal broker. 

One is the trading fees.

• How much does the broker charge for using their platform? Is it fair? In most cases, a small premium may be reasonable if various services back it. Be sure to check for inactivity fees, yearly fees, or additional charges for data or research.

• Assess the customer service the broker offers. Select a broker with a fast response time for seamless trading, especially during market volatility or when encountering challenges.

• Check out the trading platform. Can you use it easily? The platform should also be reliable and include tools and features that align with your trading style.

• Look for reviews and testimonials from other investors. The best stock broker has numerous positive reviews from customers on different platforms. Nonetheless, ensure you conduct some investigations if you encounter the same complaints from various users.

Placing a Stock Order

Once you are ready to place a stock order, just log in to your broker account and locate the trading section. You may type the stock’s code – NOK- on the search bar and select it. You will also be required to indicate the type of order you want to place.

• One of the available options is the market order. This directs your broker to implement stock trades at the actual market price.

• The other alternative is known as a limit order. This differs from the market order in that it ensures your trades are executed at a specific price.

• A stop-limit order is also on the list and is a good choice to mitigate losses. From the name, this order allows you to purchase or sell a limit order after a predetermined price is reached.

After selecting the order type, the next step is to specify the number or amount of shares you want. Lastly, press the buy button; it’s that easy! The entire process takes a few minutes. Just ensure you have a working computer or smartphone, a steady internet connection, and a means of payment.

Monitoring Your Investment

Understanding Stock Performance

You are not totally done yet. Remember to monitor your Nokia stock’s performance, which may entail following the company’s news – NOK News. Stock markets often respond to news; if something vital or unexpected occurs, the stock’s price will either increase or reduce based on the nature of the news.

• Therefore, staying updated on what’s happening lets you make informed decisions that help optimize your returns and mitigate potential losses.

• It’s also important to constantly read and evaluate the NOK chart. On the surface, a stock chart may look like a chaotic show of colors, lines, numbers and acronyms. Don’t be intimidated because you can easily learn how to read and interpret the charts.

• Ideally, the vertical line in the chart represents the asset’s prices in dollars, whereas the horizontal axis shows the trading period. So, you can tell how the NOK stock performed at specific timelines.

• In any case, you should conduct a NOK technical analysis to gain deeper insights into price movements. Thanks to tools like Moving Averages (MAs), Bollinger bands, stochastic oscillators, etc., you can know when to enter or exit the market, enhancing your chances of having successful trades.  

• Another essential approach to monitoring your investments is assessing NOK financials. This includes evaluating the company’s earnings, losses, revenue growth, cash flow, etc. Consequently, you can predict how the stock will likely perform.

• Lastly, be familiar with Nokia’s investor’s relations. As such, check out the company’s reports, filings, stock info, presentations, debt info, events, press releases, etc. This will help you be on top of Nokia’s current and future plans, so you can adjust your trading strategy accordingly.

When To Sell Your Stock

Certain scenarios require you to sell stocks. A good example is when you have achieved your investment goals. Suppose you bought the NOK stock and wanted it to reach a certain price target. It’s advisable to sell the shares when they hit that price to secure your gains.

• Do you want to rebalance your portfolio? Your investment portfolio can change from the original allocation of funds probably due to differing performance across the various assets you hold. 

• Rebalancing allows you to sell off shares from overperforming assets and reallocate the money to other opportunities.

• Another reason to sell is when the company’s fundamentals change. Perhaps you notice that Nokia is recording lesser profits, experiencing management issues, or having more debts. If that happens, consider selling to avoid losses.

• Furthermore, you can sell your NOK shares if you notice that the company is about to go bankrupt. This is one of the reasons you have to conduct thorough research from time to time.

How To Invest in Nokia With Funds

You can invest in Nokia beyond buying individual shares. How? By purchasing index funds or exchange-traded funds (ETFs) that feature Nokia shares. An ETF refers to a type of investment fund that comprises different assets like stocks, currencies, bonds, etc., and can be traded in the stock market.

• An index fund, on the other hand, denotes an exchange-traded fund or mutual fund that copies the performance of a specific basket of underlying investments. Index funds esnure instant diversification, reduced volatility, and reduced volatility. In addition, they cost less, since they operate passively.

• Now that you know what these funds are, the next thing you need to do is learn how to buy ETF or index funds. Fortunately, the process is straightforward and fast.

• Sign in to your online brokerage account and go to the trading section. Search for ETFs holding the NOK stock. Examples include TDIV, GXF, and IGN. In the case of index funds, you can select an index that tracks the NOK stock.

• Place a buy order for the chosen fund, and remember to specify the amount of shares to purchase.

Trading ETFs with a regulated broker is vital for your protection. Such a broker complies with the oversight of financial authorities, ensuring fair practices and promoting market integrity.

Conclusion

The decision to purchase Nokia stock is a good one, as the asset is quite affordable and can generate good returns. This can be attributed to several reasons, including Nokia’s competitive positioning and potential for future growth.

However, be aware of risks associated with the company, such as possible negative market sentiment or fundamental challenges that could affect the stock’s value badly. At the same time, choose a regulated broker once you purchase the asset. This ensures your investments are protected from malicious players.

FAQ

How Can I Purchase Nokia Stock?

Open an online brokerage account and fund it. You will then need to navigate the trading platform, search for the stock’s symbol (NOK), follow subsequent instructions, and submit the order.

Does Nokia Pay Dividends?

Yes. Nokia regularly pays dividends to its shareholders. It does this four times in year in February, May, August, and November. 

Are Nokia Shares a Good Buy?

Definitely. Nokia has shown good performance over the years, so you have a fair chance of generating handsome returns.

What Is the Best Stock To Buy Right Now?

NOK is among the best stocks to buy at the moment. You can also purchase stocks like Harmony Biosciences, Semler Scientific, Academy Sports Outdoors, Chesapeake Energy Corp, and RCI Hospitality Holdings.