Investing in Nokia
However, even though it is a very simple transaction to make, it is highly recommended that before trading on the stock exchange, you research as much information as possible about this company.That’s why below, we’ll show you all the information regarding the technology company of all time and, you’ll also find out how to invest in Nokia and even how much a Nokia share is worth.
What is Nokia?
Nokia or also known as Nokia Corporation, is a multinational technology company that was founded in 1865. It is made up of two groups called Nokia Networks and Nokia Technologies, and is headquartered in Espoo, Finland.Nokia Networks Group manufactures infrastructure for mobile telephony and other telecommunications equipment. It works in more than 150 countries, some of the equipment is applied in professional mobile radio, broadband Internet access, traditional voice telephony and many more.The Nokia Technologies subdivision is responsible for developing and licensing all of the company’s technology. It is composed of three different laboratories:
- The first is called Radio Systems Lab and works in the area of radio deployment, local wireless connectivity and radio access.
- The second is known as Media Technologies Lab, which works in the area of sensors, interaction and multimedia.
- Finally, Material Technologies Lab is working on quantum technologies, interaction methods and advanced sensing solutions.
The total Nokia capitalization as of 2017 was just over 28.5 billion euros. Nokia is currently listed on the stock exchange within the Euronext Paris market under the ticker symbol A. Nokia’s listing is also found within NYSE market and Helsinki stock exchange under the symbol NOKIA.Moreover, Nokia shares are also listed on the Nasdaq stock exchange under the abbreviation NOK. Nokia shares are included in the French stock market index CAC 40, giving the company a position among the 40 companies with the largest market capitalization.All of the above data is of great interest if you want to buy Nokia shares, but it is also important to know that the company has had some tough times in terms of its economy.Some time ago they were only in charge of manufacturing cell phones, this helped them to obtain the leadership in the market from 1998 to 2011. Then it was stagnated in the market, due to the new emergence of smartphones.As a result, it was forced to close some of its activities in Romania. A year later, it also had to terminate its activities in production centers located in Canada, Germany and Finland. So, in order to readjust in the smartphone market, it signed an alliance with Microsoft Corporation. In order to include the Windows Phone operating system in its new creations.Buying Nokia shares: Advantages
- The telecommunications subdivision is well positioned: After its merger with Alcatel-Lucent, this area of the company has managed to occupy one of the top three places in the telecommunications market. This means that Nokia shares are popular and stable on the stock market.
- It is well distributed in the world: Once again, its union with Alcatel-Lucent provided it with a good distribution within the best economic areas in the world.
- It has the leading position in some specific areas: Within the telecommunications area it is the leader in FTTx broadband entry and in optical transfer technologies.
- The company invests heavily in technological innovation: Nokia’s great advantage is that it invests approximately US$5 million in research and development alone.
- The company holds large patents: Some of its patents are currently worth up to more than €8 billion.
- It has strong partnerships: By getting strong agreements with huge companies like LG, you can enjoy good benefits.
- The price of Nokia shares is quite cheap compared to those of its competitors: investors recommend looking for companies where the cost of their shares is low to be able to acquire a considerable amount. Such is the case of Nokia shares since their price is quoted at a little over €3.
Buying Nokia shares: Disadvantages
- It does not have much of a future with respect to some of its activities: Its latest business activities have shown that the mobile area of the company is not as organized as it should be.
- Currently the value of Nokia shares is very low. This can be both an advantage and a disadvantage and the fact that Nokia stocks have a price of only 3€, makes us think that the gains will be very slow.
- The addressable networks market has had a difficult time for some time now: since 2016, the activities in this market have become a bit more complex, as they have not had as positive an evolution as expected.
Although there are several ways to buy a Nokia stock, the simplest and most cost-effective way is to use a stock broker. These online platforms help you to trade within the stock market without applying much effort. The most important thing is to choose the most suitable and reliable one to invest your money.The most common ones for investing in stocks are: Plus500, Admiral Markets, IQ Option, Interactive Brokers, eToro, XTB and AvaTrade. Each one suits your needs, but in case you are a beginner we would recommend you to use eToro.The eToro broker is totally secure and has an interface that is quite easy to use, it also allows you to choose between several trading methods. So, if you don’t know how to buy Nokia through this broker, we will explain it to you below:
- First register an account with your personal data.
- Now deposit the money to invest. It is worth mentioning that the minimum amount to operate in this platform is 200 dollars.
- In the search bar enter the name of Nokia and choose the number of stocks you want to buy including the price (in case you want to customize the quotation).
- Click on invest and you’re done!
- Before buying a Nokia stock, study everything about stock market investment: For some people this activity is something new, so it is recommended that you study all the terminology of the area.
- Create your own budget: It is advisable that you invest an amount that you are willing to risk and that will not affect your capital in case you lose it.