How to buy Universal Music Group (UMG) stock from Canada

If you live in Canada, you need a broker that provides access to foreign investments to buy Universal Music Group stock.

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In September, 2021, global music production company, Universal Music Group, went public on the Euronext Amsterdam stock exchange. Here’s what we know about the IPO and how to buy Universal Music Group stock in Canada.

What we know about the Universal Music Group IPO

On September 21, 2021, Universal Music Group went public on the Euronext Amsterdam under the ticker symbol “UMG.” The offering took place after a 10% stake in UMG was acquired by Pershing Square Holdings, a UK-based investment company that also trades on the Euronext Amsterdam (ticker symbol “PSH”).

On September 21, UMG stocks opened at a price of €25.25 (roughly $35 CAD), which was higher than the expected price of €18.50. Altogether, the company earned a market valuation of around €46.3 billion (roughly $63.3 billion CAD) from the IPO. Rival music production company, Warner Music Group, saw its Nasdaq stock price rise the day Universal debuted in Amsterdam, a side effect of investors’ optimism in UMG.

Initially, UMG was slated to be bought by Pershing Square Tontine Holdings, a special purpose acquisitions company (SPAC) owned by billionaire investor Bill Ackman.

But the deal fell through amid concerns expressed by the US Securities and Exchange Commission (SEC) that the structure of the international business company would violate the rules of the New York Stock Exchange. Furthermore, investors lacked confidence in the deal, as the SPAC’s stock price had fallen by 18% following the announcement of the merger.

Can I buy Universal Music Group stock from Canada?

You can’t buy Universal Music Group stock on a Canadian stock exchange like the TSX or CSE. Instead, you need a Canadian broker that provides access to stocks sold on the Euronext Amsterdam (AEX), the Netherlands-based exchange on which Universal Music Group stocks are trading.

However, some Canadian brokerages don’t offer access to international investments at all or only provide access to a limited range of investment opportunities.

Interactive Brokers provides access to many stock exchanges around the world including the Euronext Netherlands (AEB), Frankfurt Stock Exchange (FRA), London Stock Exchange (LSE), New York Stock Exchange (NYSE), NASDAQ, Toronto Stock Exchange (TSX), Hong Kong Stock Exchange (SEHK), Korea Stock Exchange (KRX) and National Stock Exchange of India (NSE).

The process of buying stocks listed on international exchanges is basically the same as buying stocks in a Canadian company. You buy and sell using your online trading account or through an investment broker who handles international stocks.

How to buy international stocks in Canada

How to buy Universal Music Group stock

You can buy Universal Music Group stock with an international brokerage account. Here’s how it works:

  1. Compare stock trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Universal Music Group N.V. Find the stock by name or ticker: UMG. Make sure you research the company’s history to confirm whether it’s an investment that will help you reach your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Universal Music Group reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Universal Music Group, depending on your broker.
  6. Check in on your investment. Optimize your portfolio by tracking how your stock—and the business as a whole—performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Open a stock trading account to buy and sell foreign stocks

To buy stocks, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit for you.

Note: The dollar amounts in the table below are in Canadian dollars.

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Name Product CAFST Available Asset Types Account Types Stock Trading Fee Account Fee Offer
Interactive Brokers
Finder Score: 4.2 / 5: ★★★★★
Interactive Brokers
Stocks, Bonds, Options, Index Funds, ETFs, Currencies, Futures
RRSP, TFSA, Personal, Joint
min $1.00, max 0.5%
$0
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Online stock trading
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

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