That article is about Introduction: Tokyo Stock Exchange. The world’s largest stock exchange is the New York Stock Exchange. Tokyo Stock Exchange occupies the second slot in this aspect. This exchange is located at Tokyo, Japan. According to some of the latest estimations, this exchange has already listed approximately 2414 companies. The Tokyo Stock Exchange boasts of an impressive market capitalization of US$4.3 trillion.
Unlike some of the other stock exchanges, this stock exchange operates in a distinct manner. For instance, a segregation of the Tokyo stock exchange trading hours exists – from 9:00 to 11:00 and from 12:30 to 15:00. Stay tuned for other interesting snippets of information in the rest of the passages.
In order to simplify the trading practices, the authorities classify companies into various sections. Primarily, three sections exist – the first section, the second section and the mother’s section. The first section includes some of the prominent companies that have high returns and zero liabilities.
By now, you might have some idea about the second section – it deals with mid-sized companies. In order to facilitate the financial requirements of various star-up enterprises operating within the country, the Tokyo stock exchange commissioned the mother’s section. Newer additions into these sections are quite common.
You might be interested in learning about the indices followed by the Tokyo Stock Exchange. Regulation and benchmarking of the trading practices within the exchange are conducted with the aid of three indices – the Nikkei 225, the TOPIX and the J30. The stock exchange utilizes an interesting manner to come up with the company indexes.
It relies heavily on the data provided by some of the largest business newspapers’ in the country. The float to the free float ratio of the companies is taken into consideration while determining the TOPIX index. Some of the largest and highly developed companies have found themselves in the J30 index.
One can monitor the activities of the exchange by checking out the press releases and discussions held at the official press club of the Tokyo stock exchange. The members of this elite club include prominent business personalities. Entities that represent some of the popular television broadcasting agencies in the country are also present in this club. It was only in 2001 that the Tokyo stock exchange was reestablished as a distinguished stock exchange company in the country. Although plagued by a host of technical problems, the exchange continues to cater to the daily trading requirements of the entire nation.
Tokyo stock exchange acknowledges the faults in the system. Even though many companies have lost many billions due to the errors programmed into the computers, the exchange still thrives as the world’s second largest stock exchange in terms of revenue. Quite lately, the sudden and unexpected trading volumes proved to be too taxing to the infrastructure present within the exchange.
This led to the partial breakdown of the system and the traders had to deal with turbulent times. In order to combat the situation, the authorities are in talks with London Stock Exchange. Mutual sharing of the electronic platforms is the primary objective of such discussions.