Nokia Corp. (NOK) is an iconic name in the world of telecommunications. Established in 1865 as a paper mill operation in Finland, it later transitioned into the telecom industry over the 20th century. Many of us remember Nokia as the brand behind our first mobile phones in the 1990s and early 2000s.
Today, Nokia has evolved to offer a diverse range of products, including mobile phones, laptops, televisions, audio devices, and tech accessories, all while maintaining a strong focus on sustainability and climate change.
If you’re interested in becoming a shareholder of this historic company, you’ve come to the right place. In this guide, we will walk you through the process of buying Nokia stock. We’ll explore alternative investment options to consider if you want to invest in Nokia indirectly.
How to Buy Nokia Stock
1. Choose an Investment Account
Before you start investing in Nokia stock, you have to open a brokerage account that allows you to buy and manage stocks. Consider the following options:
- Full-service brokers: These provide comprehensive investment advice but often come with higher fees.
- Robo-advisors: Automated platforms that can manage your investments, with some offering personal assistance when needed.
- Online brokers: Ideal if you want to take an active role in managing your investments, offering self-directed access to your portfolio.
- Investment apps: Great for beginners who want to learn more about the markets, some provide self-directed tools, while others function more like robo-advisors.
Depending on your long-term goals, you may have various account types to choose from:
- Retirement accounts (IRAs): These offer tax benefits when investing for retirement, with options like SEP IRAs, traditional IRAs, and Roth IRAs, each with unique tax advantages and contribution limits.
- Taxable brokerage accounts: Suitable for short-term investment goals, these accounts have no annual contribution limits but are subject to capital gains taxes.
2. Determine Your Investment Amount
Before investing in individual stocks like Nokia, ensure you have a solid financial foundation. Focus on:
- Budgeting: Make sure you have enough discretionary cash each month to cover essentials.
- Funding Priority: Before buying individual stocks, consider fully funding workplace retirement accounts, building an emergency fund, and potentially saving for education expenses in a 529 account.
3. Research Nokia
Evaluate Nokia’s recent market performance and financial results, which you can find on its investors’ page. Understanding the company’s historical performance is crucial in making an informed investment decision.
Keep an eye on what experts are saying about Nokia. After years of ups and downs, some predict it may be on track to reaffirm its blue-chip status. Reading reports and analyses can provide valuable insights.
4. Place Your Order
Using a Self-Directed Platform:
- Log in to your chosen investment platform.
- Enter the ticker symbol “NOK” in the search bar.
- Specify the number of shares or the dollar amount you wish to invest.
- Choose between a market order (processed immediately at the current price) or a limit order (processed when the stock reaches your specified price).
Working with a Financial Advisor:
- Communicate your desire to purchase Nokia shares to your advisor.
- Provide details about the amount you want to invest and the type of order you’d like to use.
- Your advisor will execute the purchase on your behalf.
5. Monitor Your Investment
Keep an eye on your Nokia stock’s performance over time. Regularly assess how it aligns with your investment goals.
If you have a financial advisor, schedule periodic check-ins to review the performance of your Nokia stock.
If you’re managing investments yourself, periodically evaluate your Nokia stock and other holdings to ensure they continue to support your financial objectives.
How to Sell Nokia Stock
Selling your Nokia stock is a straightforward process:
- If you have a financial advisor, inform them of your decision to sell, and they will execute the transaction on your behalf.
- For self-guided accounts, log in to your account, enter the NOK ticker symbol, specify the number of shares or the dollar amount you want to sell, and select “sell.”
Other Investment Options
While buying individual stocks can be rewarding, it also carries risks. To diversify your portfolio and potentially lower risk, consider these alternative investment options:
1. Index or ETF Investments: Instead of investing directly in Nokia, consider putting your money into an index or exchange-traded fund (ETF) that includes Nokia within its holdings. This approach offers diversification across multiple companies, reducing the impact of Nokia’s performance on your overall portfolio.
2. Mutual Funds: Mutual funds provide an opportunity to invest in Nokia indirectly while benefiting from professional portfolio management. Some mutual funds have substantial equity stakes in Nokia, offering a diversified approach to investing in the company. Three noteworthy mutual funds with significant Nokia holdings include:
- T. Rowe Price Growth Stock Fund (PRGFX): This fund seeks long-term growth of capital and often includes Nokia among its investments.
- American Funds Growth Fund of America (AGTHX): Known for its diverse equity holdings, this fund may include Nokia as part of its portfolio.
- Vanguard Total Stock Market Index Fund (VTSAX): A low-cost index fund that aims to track the performance of the entire U.S. stock market, which may include Nokia within its holdings.
Learn more: Best Investment Options
