What are unlisted shares? A guide for new investors

Most of the stocks we hear about in everyday life, such as Volvo or H&M, are traded on an exchange, such as the Stockholm Stock Exchange. There, buying and selling takes place automatically and in real time, and companies must follow strict rules for how much information they share. Unlisted stocks work differently: they belong to companies that have chosen not to list on an exchange, often smaller or younger companies that have not yet taken the step.

The difference is noticeable in several ways. An unlisted company does not have the same statutory requirements to continuously inform the market about its finances, which means that buyers and sellers may have different amounts of information about the company. Trading also does not take place automatically in real time, but more manually, which has historically meant fewer deals and more difficult pricing.

This brings with it risks that are important to be aware of before investing. Unlisted stocks are generally less liquid, which means it is harder to sell quickly if you want or need to. Since information about the company may be more limited, it is especially important to familiarize yourself with what you are investing in. As with all share trading, there is no guarantee of return, and in unlisted companies, fluctuations can be greater.

Traditionally, it has been complicated for private individuals to access unlisted shares at all. Many banks require that you do a so-called suitability assessment and then contact an advisor to trade manually, often by phone. That is one of the reasons why Nordivo exists: to make it easier and more transparent to buy and sell unlisted shares digitally, while as a licensed platform we follow the rules that are in place to protect you as a customer.

If you want to read more about the subject from a broader perspective, we recommend Swedbank's review of unlisted shares, which describes the risks in a good and neutral way.

Remember: all investing involves risk, and you should never invest more than you can afford to lose.