Smith & Nephew (LON: SN) develops and manufactures medical equipment, which is sold across the world. They make a wide range of products, including knee, hip, and shoulder replacement systems. Smith & Nephew is also recognised as being a leader in wound management.
They are pioneers in the development of the equipment needed to conduct minimally invasive surgery including several surgical imaging systems that are used globally.
What follows is our guide to buying shares in Smith & Nephew.
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Step 1: Find a broker
Smith & Nephew is listed on the London Stock Exchange and on the New York Stock Exchange (NYSE: SNN). If you want to buy their shares, you'll need a broker with access to at least one of these stock exchanges.
When considering your options for a brokerage, you need to consider factors such as their commission structure and the foreign exchange fee the broker charges.
Also, look into market access, tradable instruments and whether or not they have fractional share investment.
If you’re new to investing, being able to open a demo account where you can practice could also be a worthwhile feature.
Step 2: Fund your account
You can fund your account using a bank transfer or a debit card. Some brokers will accept credit cards and/or PayPal as well.
Note that the length of time funds take to settle in your account can vary, depending on the method used.
Step 3: Decide how much to invest
Investing in shares is not a sure bet. Share values fluctuate based on a number of variables and there is no guarantee that you will not lose money. Therefore, you should not invest any more than you can afford to lose without putting yourself in financial difficulty.
Step 4: Choose between buying shares or an ETF
ETFs are a way to share in the growth of a particular sector or theme. For example, there are ETFs for the health industry and precision engineering.
ETFs that include shares of Smith & Nephew include iShares Core MSCI EAFE ETF (IEFA), SPDR(R) Portfolio Developed World ex-US ETF (SPDW), and Vanguard Total World Stock Index Fund ETF Shares (VT).
Step 5: Configure your order
A market order is the most basic order type available, allowing you to buy shares at the next available price (which might be slightly higher or lower than what was quoted).
Most brokers offer a type of order that is automatically executed when pre-defined conditions are met. Alternatively, you may be able to configure a recurring order to buy more shares at regular intervals, e.g. every month, and build your position over time.
Step 6: Buy
With your account set up and funded, submit your order to buy shares.
Smith & Nephew’s share price may be affected by government spending on health and population-level demographic change. For example, an ageing population — as is the case in a growing number of developed nations — will typically require more medical intervention. New products and services being introduced to address these markets can help their valuation. However, it is a fiercely competitive — and acquisitive — market.
Their main competitors are Orthofix (NASDAQ: OFIX), DePuy Synthes owned by Johnson & Johnson (NYSE: JNJ), Globus Medical (NYSE: GMED), and Zimmer Biomet (NYSE: ZBH). You can track the performance of these companies to gauge how Smith & Nephew are performing against the broader market.
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