Gauging Nike Stock Prices

When you're considering purchasing stock in Nike, you should be aware of what to look for that might affect Nike stock prices. For example, news about sweatshops, even though the sweatshops are linked with a different company, can cause those stock prices to dive. When you examine these sorts of occurrences and their effect on stock prices in general, it's referred to as "event studies" in financial circles, but as "storying" or "restorying" in organizational management theory. Regardless of its name, understanding how current events affect your Nike stock prices is crucial to handing your stocks in an educated manner. You should be aware of such things as where Nike factories are located, which ones are in unstable countries, and what you might expect to happen in the worst-case scenarios that do crop up. By keeping abreast of what's going on in these places, your Nike stock prices should be easier to track and manage. Nike stock prices can also be affected by marketing strategy, but not in the normal fashion. Like most sports apparel, Nike leans heavily on celebrity endorsement. But what if that key celebrity who underpins all your advertising is suddenly caught in a scandal? Your sales are probably going to take a hit, and your Nike stock prices will drop. This does not hold true perfectly, but it's largely what you should expect. If you want to get a realistic handle on how event studies can be used to gauge your future Nike stock prices, you have to look into the past. Go into the company's historical stock data (you should be able to get this from your stockbroker or online stock trading service) and examine where stocks have fallen and risen. Look up business news stories from those time periods, and see where the patterns lie. Does the stock always fall when there's unrest in Asia, but you know they're planning to close the key factory there? Then you can probably expect stocks to go up. Did stocks rise, and then suddenly dip with key commercial campaigns? When a celebrity endorser is involved in a scandal, do stocks rise or fall? With event studies like this, you can regulate your Nike stock. Prices are going to rise and fall, but if you know what to expect, you can profit the most.

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