Tokyo Stock Exchange (TSE)

What Is the Tokyo Stock Exchange (TSE)?

The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, settled in its capital city of Tokyo. The Tokyo Stock Exchange was laid out on May 15, 1878. As of Sept. 14, 2021, the exchange had 3,784 listed companies. The TSE is run by the Japan Exchange Group and is home to the largest and most popular Japanese monsters with a global presence — including Toyota, Honda, and Mitsubishi.

Moreover, the TSE offers specific trading data, real-time and historical index statements, market statistics, and data about and from [specialists](/trained professional). Remarkably, the abbreviation TSE for the Tokyo Stock Exchange ought not be confused with Canada's Toronto Stock Exchange, which is known by the abbreviation TSX.

Understanding the Tokyo Stock Exchange (TSE)

At the pinnacle of the Japanese asset price bubble in Dec. 1989, the Nikkei 225 index arrived at a record high of 38,916. Following this, the TSE's combined market capitalization shrank decisively throughout the next twenty years, as the Japanese economy battled with a recessionary environment and the Nikkei plunged in value.

As of Sept. 2021, the board individuals from the Tokyo Stock Exchange are Director

(Administrator of the Board) Tsuda Hiroki; Director and Representative Executive Officer, Group CEO Kiyota Akira; Director and Representative Executive Officer, Group COO Yamaji Hiromi; and Directors Iwanaga Moriyuki and Shizuka Masaki.

The five largest stocks by market capitalization listed on the Tokyo Stock Exchange as of the finish of July 2021 were (in 100 great many Japanese yen):

1. Toyota Motor Corporation (\u00a5319,936).
2. Keyence Corporation (\u00a5147,724).
3. Sony Group Corporation (\u00a5143,445).
4. SoftBank Group Corp. (\u00a5117,798).
5. Select Holdings Co. (\u00a595,465).

At the point when the Tokyo Stock Exchange (TSE) first opened in 1878, a portion of its most memorable customers were former samurai, who required a market to trade bonds that had been issued to them by the government.

Other Major International Exchanges

Notwithstanding the Tokyo Stock Exchange, other major trading exchanges worldwide incorporate the New York Stock Exchange (NYSE), the Nasdaq, and the London Stock Exchange (LSE). Each exchange has specific listing requirements that owners must meet prior to offering their securities for trading.

As a general rule, these requirements incorporate normal financial reports, for example, evaluated earning reports, and least capital requirements. For instance, the NYSE has a key listing requirement that specifies a company must have no less than 1.1 million publicly traded shares of stock with a stock price of something like $4 per share. The company must have an aggregate pre-charge income of $10 million for the previous three fiscal years, with no less than $2 million in every one of the latest two fiscal years. Nasdaq expects listers to meet aggregate pre-charge income in the prior three fiscal long periods of no less than $11 million and a base bid price of $4.

Analysis of the Tokyo Stock Exchange (TSE)

Some market participants have complained that throughout the long term the TSE has become too large and complicated compared to other global exchanges. The TSE consists of five sections. The principal section records Japan's greatest companies and the second section records medium-sized companies. Combined, these two sections are called the "primary markets."

Then, at that point, there are two sections dedicated to startups. These sections are called the "Moms" (Market of the High-Growth and Emerging Stocks) and the Jasdaq (which is isolated further into standard and growth sub-sections). The last section is the Tokyo Pro Market, which is for professional investors as it were.

To complicate matters, every one of these TSE sections has its own listing requirements. As of Sept. 14, 2021, the primary section alone included around 2,190 companies, practically double the level from 1990. A plan to reform the TSE incorporates improving on the criteria isolating the sections and lessening the number of sections to three — Prime, Standard, and Growth. Another conceivable change incorporates expanding the market cap requirement to reduce the number of companies listed in the top tier.

Highlights

• The TSE records the largest companies in Japan, including Toyota, Softbank, Keyence Corporation, Sony Corporation, and Chugai Pharmaceutical.
• The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, listing 3,784 companies (as of Sept. 2021).
• Two sections are saved for startup companies and the last section of the TSE is for professional investors as it were.
• From 1991 to 2001, the TSE shrank decisively as the Japanese economy contracted after the country's equity and real estate bubbles burst.
• The TSE is comprised of five sections; the initial two sections are called the "Fundamental Market" and incorporate large cap and medium cap companies.