Investing on the stock exchange in Denmark
The Copenhagen Stock Exchange, or CSE (Danish: Københavns Fondsbørs, officially NASDAQ Copenhagen A/S) is the largest stock exchange in Denmark. The exchange, which has a long history, was incorporated in 1996 and is based in Copenhagen, the capital of Denmark. The CSE has been part of Nasdaq since January 2005, when the then OMX bought it for €164 million. The Copenhagen Stock Exchange is a company that facilitates the raising of capital for companies through securities trading. Exchange operations started in the Christian IV Exchange building, built in the 1620s to serve as a commodity exchange. The Copenhagen Stock Exchange (CSE) was founded in 1808 as Denmark’s stock exchange. In 1974, the premises became too small and the Danish stock exchange moved to Nikolaj Plads 6. In 1996, the Copenhagen Stock Exchange was transformed from an independent institution into a limited company in connection with the so-called Stock Exchange Reform II, which abolished the stock exchange monopoly. Share capital was distributed 60% to trading members and 20% to both equity and bond issuers. In 1998, the CSE joined the NOREX alliance with the Stockholm Stock Exchange. NOREX eventually grew to include exchanges in Oslo, Iceland and regional markets as it sought to take advantage of greater international investment opportunities by using a common trading platform and regulatory framework. NOREX, together with the Copenhagen Stock Exchange, became a member of the OMX Exchange group in 2005, which then became part of Nasdaq in 2008. Nasdaq Nordic is Nasdaq’s subsidiary that includes the Copenhagen, Stockholm, Helsinki and Iceland exchanges. In 2005, the company was taken over by the Swedish company OMX, which also operated exchanges in the other Nordic and Baltic countries. In 2008, OMX was listed under the US company Nasdaq, Inc. and the Scandinavian operations were then operated until 2014 under the name NASDAQ OMX, and the Danish operations under the name NASDAQ OMX Copenhagen/NASDAQ OMX Copenhagen. On October 1, 2014, the name OMX was discontinued and the Danish branch has since then been called NASDAQ Copenhagen. In public, the name Copenhagen Stock Exchange is still used most often. The 25 most traded shares on the Copenhagen Stock Exchange make up the C25 index. There is an exchange-traded fund that tracks this index, XACT OMXC25 ESG (UCITS ETF). Another commonly referenced index is the OMX C20. The CSE manages the OMX C20, a stock index launched in 1989 that includes 20 of the exchange’s blue chip companies. The C20 is Denmark’s main benchmark stock index, and investors can buy or sell futures and options with the C20 index as the underlying asset. The OMX C25 stock index was launched in 1996 as a second market capitalization-weighted, free float-adjusted and capped index. The C25 index contains the 25 largest and most traded stocks on Nasdaq Copenhagen.
The Danish economy
Denmark’s economy is among the most developed in the world. “Denmark’s economy performs particularly well in terms of administrative efficiency. Open market policies maintain flexibility, competitiveness, and large trade and investment flows, and the transparent and efficient regulatory and legal environment encourages robust entrepreneurial activity. Banking regulations are sensible and lending practices are prudent”, according to the Heritage Foundation. Parent company Nasdaq states that it is “the creator of the world’s first electronic stock market, its technology powers more than 90 marketplaces in 50 countries and 1 in 10 of the world’s securities transactions. Nasdaq is home to approximately 3,900 total listings with a market capitalization of approximately $13 trillion.”
Danish dividend-paying shares
There are several good stocks in Denmark. Buying Danish shares, with or without dividends, can be a good way to diversify your portfolio and gain exposure to sectors that are underrepresented in Sweden. As a result, many Swedish savers choose to invest in shares in Denmark. At the time of writing, there are around 190 listed shares in Denmark. Denmark is home to several large companies that are world leaders in the sector in which they operate. Many of these also happen to be stable dividend stocks.
What is withholding tax in Denmark?
Withholding tax is 27% in Denmark.
Which account is best for Danish shares?
For most people, it is most profitable to save in an endowment policy. This is because the insurance company (the bank) can often claim back the full amount of withholding tax on dividends within a couple of years.
Trading shares on the Danish stock exchange
You can trade shares on the Danish stock exchange through most Swedish banks and online brokers, such as DEGIRO, Nordnet, Aktieinvest and Avanza. Check that the broker you choose claims the tax back.
Vikingen offers price data on Danish shares
Danish Stock Exchange, Want a better overview of stocks from Denmark? Here you will find popular companies like Coloplast, Pandora and Vestas. You can do this by adding the extension Danish shares from as little as 78 kroner per month.
About the Vikingen
With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
