2. Describe the trend in Nike stock prices over the last year. What about the last 5 years?
Over the last year, Nike's stock generally moved up and down in a pattern with some waves, ending near roughly where it started but with ups and downs along the way. Over the last 5 years, Nike's price shows bigger swings with periods of growth and some dips, but the long-term trend has been upward with overall gains despite some declines.
3. Is Nike a small, medium, or large cap company? How do you know?
Nike is a large-cap company. We know this because its market value (market cap) is well over $10 billion, indicating a big established company with a lot of outstanding shares and a high total value.
4. Company B’s stock price is $500. You overhear a classmate say, “Based on the stock price, Company B’s value is clearly higher than Nike’s!” Why might your classmate be wrong?
Price per share alone doesn’t show a company’s total value. A company with more shares can have a higher price per share but a smaller overall value. Market cap (share price × number of shares) and other factors like earnings matter more than the single share price.
5. If you were considering buying a stock, which time frame would you use to analyze its price history (1-day, 5-day, 1-month, etc)? Why?
Use a longer timeframe like 3 months to 1 year to understand trends and avoid noise from daily swings. This helps you see overall patterns (up, down, or sideways) rather than reacting to a single day's move.