Tokyo Price Index - TOPIX

AAA

DEFINITION of 'Tokyo Price Index - TOPIX'

An index that measures stock prices on the Tokyo Stock Exchange (TSE). This capitalization-weighted index lists all firms that are considered to be under the 'first section' on the TSE, which groups all of the large firms on the exchange into one pool. The second section groups all of the remaining smaller firms.

INVESTOPEDIA EXPLAINS 'Tokyo Price Index - TOPIX'

The TOPIX is believed to be more representative of the Japanese stock markets than the Nikkei because of the more fair representation of price changes and the inclusion of all the largest companies on the exchange.

Currently, about 1,600 first section companies are listed on the TSE, along with 500 second section companies.

RELATED TERMS
  1. Kakaku Yusen

    The system of pricing that is used by the Tokyo Stock Exchange. ...
  2. Market Index

    An aggregate value produced by combining several stocks or other ...
  3. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  4. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  5. Price-Weighted Index

    A stock index in which each stock influences the index in proportion ...
  6. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
Related Articles
  1. Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

    To take full advantage of these vehicles, you need to know how they can fulfill certain strategies.
  2. Options & Futures

    The Benefits Of ETF Investing

    Exchange-traded funds provide unique opportunities for investors. Find out how.
  3. Economics

    The Stock Market: A Look Back

    The past century was marked by furious economic change. What can it tell us about what lies ahead?
  4. Mutual Funds & ETFs

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
  5. Economics

    Growth and Stabilization In The Global Economy

    The continued advance for stocks implies a stabilization in international economies, which indicates global growth is steadying after declining last year.
  6. Mutual Funds & ETFs

    How To Invest In The Nikkei 225

    The Nikkei index is synonymous with Japan's economy, the third-largest in the world. Here's the easiest way to take a stake.
  7. Investing Basics

    A Guide To Japan’s Nikkei 225 Index

    If you want to keep your finger on the pulse of the Japanese economy and stock market pay attention to the bellwether Nikkei 225.
  8. Savings

    5 Smart Money Strategies From Around The World

    Around the globe, the way money is thought about, handled, saved and spent varies greatly from what might be the norm in the U.S.
  9. Markets

    The Handy Guide To Global Stock Market Holidays

    Exchanges close on holidays--which vary by country. If you're a global trader, it's useful to have this handy Investopedia bank holiday reference.
  10. Economics

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center