Kavan Choksi On The Tokyo Stock Exchange in Japan and Its Role in The Market

Tokyo Stock Exchange functions

The Stock Exchange was established in Tokyo on the 15th of May 1878, and it is the largest stock exchange present in Japan. As recorded till the 14th of September 2021, it has 3,784 companies listed on it and operated by the Japan Exchange Group. It houses some of the most esteemed Japanese giants having an international presence, including Honda, Toyota, and Mitsubishi.

Kavan Choksi – Understanding how the Tokyo Stock Exchange functions

Kavan Choksi is a reputable business and finance expert with invaluable knowledge of economics and investments. According to him, the Tokyo Stock Exchange, also known as TSE, provides one with detailed trading information, historical index quotes, data in real-time, market statistics, and information from and about specialists. The acronym for the Tokyo Stock Exchange is TSE, and it should not be confused with the Toronto Stock Exchange in Canada, whose acronym is TSX.

The price asset bubble in 1989

During the height of the asset price bubble that took place in Japan in December 1989, the Nikkei 225 index attained record highs of 38,916. After this, the combined market capitalization of the Tokyo Stock Exchange shrank mainly in the following two decades as the economy of Japan battled recession and the Nikkei’s value dropped.

When the Tokyo Stock Exchange opened in the year 1878, some of its first clients were ex-samurai who wanted a market to trade bonds that were given to them by the government of Japan.

Other prominent stock exchanges

Besides the Tokyo Stock Exchange, the top trading exchanges across the globe include the London Stock Exchange, the New York Stock Exchange, and the Nasdaq. Each of these exchanges has its own listing requirements that owners should meet before they offer their securities for financial trading.

Generally, these requirements cover regular finance reports like audited earning reports and the minimum standards for capital. For instance, the New York Stock Exchange has a top listing requirement where the company should have at least 1.1 million shares of stock that have been traded publicly, with the price of a stock of at least $4 for every share.

The company should have had an average income before tax of $10 million for the past three financial years, with at least two million dollars in each of the previous two fiscal years. On the other hand, Nasdaq requires companies to meet the aggregate pre-tax income in the last three fiscal years of a minimum of $11 million and have a reasonable bid price.

Business and finance expert Kavan Choksi says that the five most significant stocks based on market capitalization that was listed on the TSE recorded July-end in 2021 were, in Japanese Yen millions, Toyota Motor Corporation, Recruit Holdings Co, Sony Group Corporation, Keyence Corporation, and SoftBank Group Corp.

The Tokyo Stock Exchange is comprised of five sections, and the first two sections are known as the Main Market and include the large and medium-cap companies. These two sections are limited to startup companies, and the other section is reserved for professional investors only.

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