What Constitutes The Japanese Stock Market?Japan is arguably the economic super power of Asia. Many Japanese companies are world leaders in their respective fields. Toyota and Nikkon are just two of such companies. As if taking a cue from these companies, the Japanese stock market has carved a name for itself on the world map, and presently is among the very best, and among the biggest in the business. In fact, this stock market is next only to the New York stock market, and is the biggest in Asia.. The Japanese Stock Market enjoys high reputation. Maybe this is why the western markets keep a close tab over the various proceedings of this market. It was established on 15th may 1878. But before we discuss the Japanese stock market in detail, let us first understand the concept of the stock market in general. A stock market is a place where stocks, securities, futures, and bonds are traded. This market is open on all working and business days of the country of its location, and buyers and sellers together do their business. In these stock markets, only those companies are allowed to trade who are listed. Though the companies that are not listed are also allowed too do business through OTC (Over the counter), they are considered highly risky. The reason being they are not listed and because they are lacking in the desired standards. . Even However, the organization that owns the market is allowed to trade directly. In rest of the cases, brokers are there to trade for themselves as well as for others, and take some commission in return. The Japanese stock market is commonly known as Tokyo stock exchange. There are various indexes in the Tokyo stock exchange, and the largest of these indexes are Nikkei 300, which is also the most watched index of Asia. The Tokyo Stock Exchange has now listed 2424 domestic companies in addition to 26 foreign companies. This shows the extent of importance of this exchange. Almost 90% of the total securities transactions of Japan are being done in the Tokyo stock exchange. There are basically three sections in which the Tokyo stock exchange is divided. These sections are: first section, second section and Mothers section. The first section has large companies with high trading volumes, and are called 'blue chips'. In the second section, the companies that have low trading volumes and smaller capitals involved are placed. The Mothers section comprises of both domestic and foreign venture capital companies. With the changing times, the Tokyo stock exchange has also taken certain steps to compete globally. Recently, it has established Kabushiki Kaisha, commonly called K.K organization which is a type of business organization. The K.K organization has a formidable governing body that includes four auditors, nine directors and eight executive officers. The Japanese stock market has this kind of a structure, and is the best stock market of Asia, and the second best stock market of the world. |