DEFINITION of 'Tokyo Stock Exchange (TSE)'

The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, headquartered in its capital city of Tokyo. The Tokyo Stock Exchange was established on May 15, 1878. Today exchange has close to 3,500 listed companies, with a combined market capitalization in 2018 of greater than $4 trillion. The exchange is home to the largest and best-known Japanese giants with a global presence, including Toyota, Honda and Mitsubishi.

In addition the TSE offers specific trading information, real-time and historical index quotes, market statistics, and information about and from specialists.

Notably, the acronym TSE for the Tokyo Stock Exchange should not be confused with Canada's Toronto Stock Exchange, which is known by the acronym TSX.

BREAKING DOWN 'Tokyo Stock Exchange (TSE)'

At the peak of the Japanese asset price bubble in December 1989, the Nikkei 225 index reached a record high of 38916. Following this the TSE's combined market capitalization shrank dramatically over the next two decades, as the Japanese economy struggled with a recessionary environment and the Nikkei plunged in value.

Current board members of the Tokyo Stock Exchange, according to Bloomberg, are: Senior Managing Director Yoshinori Suzuki, President and CEO Koichiro Miyahara, and Akira Kiyota of the Japan Exchange Group.

As of March 2018, the five largest stocks listed on the Tokyo Stock Exchange included (in millions of Japanese yen):

  1. Toyota Motor Corporation (¥222.6)
  2. NTT DOCOMO,INC. (¥105.931)
  3. Mitsubishi UFJ Financial Group, Inc. (¥96.883)
  4. SoftBank Group Corp. (¥87.5)
  5. Keynence Corporation (¥80.3)

Tokyo Stock Exchange (TSE) and Other Major International Exchanges

In addition to the Tokyo Stock Exchange, other major trading exchanges worldwide include: 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.

In general, these include regular financial reports, including audited earning reports, and minimum capital requirements. For example, the NYSE has a key listing requirement that stipulates a company must have a minimum of $4 million in shareholder’s equity and pre-tax income in the last fiscal year or two of three most recent fiscal years of $750,000 in its first of four categories. Nasdaq requires listers to meet aggregate pre-tax income in the prior three fiscal years of >$11 million and a minimum bid price of $4.

With strong 2017 market conditions, the past year was a comeback year for IPOs. More than 1,700 companies listing their securities for trading for the first time. This was the highest number of IPOs in a year since 2007.

RELATED TERMS
  1. Samurai Market

    Samurai market is a slang term for the stock market in Japan, ...
  2. Bombay Stock Exchange (BSE)

    The Bombay Stock Exchange (BSE) is the first and largest securities ...
  3. Listed Security

    A listed security is a financial instrument that is traded through ...
  4. Miami Stock Exchange

    The Miami Stock Exchange offers a full range of processing and ...
  5. Primary Listing

    A primary listing is the main stock exchange, such as the New ...
  6. Milan Stock Exchange (MIL) .MI

    The Milan Stock Exchange is Italy's securities market. It merged ...
Related Articles
  1. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  2. Insights

    The World's Leading Financial Cities

    Find out the cities that are the most predominant hubs of global financial activity.
  3. Investing

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  4. Personal Finance

    Visiting Tokyo And New York: How Costs Compare

    What visitors to these two great (but expensive) tourist meccas can expect to pay for hotel, meals and seeing the sights. Plus a few money-saving tips.
  5. Financial Advisor

    How to Travel to Tokyo on a Budget

    Planning a trip to Tokyo? Here are a few ways that you can make the trip more affordable.
  6. Financial Advisor

    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. Tech

    5 Live Bitcoin Exchanges

    Learn about five of the largest bitcoin exchanges operating around the world in 2015, and discover the issues these exchanges are facing.
RELATED FAQS
  1. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  2. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  3. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
  4. Trading hours of world's major stock exchanges

    Learn about stock exchange trading hours, the opening and closing times of some major global stock market exchanges, and ... Read Answer >>
  5. Will I lose my shares if a company is delisted?

    Learn about stock listing requirements and what happens to your shares when a company's stock is delisted from a major exchange ... Read Answer >>
Trading Center