The first section of the Tokyo Stock Exchange is the “Prime Market (tentative name)”.
Reorganization of the Tokyo Stock Exchange's four markets into three is under consideration. The Financial Services Agency has given the tentative name “Prime Market” as an example of a new name for the market equivalent to the first section of the Tokyo Stock Exchange.
The Tokyo Stock Exchange currently has four general markets, “Parts 1” and “Part 2”, as well as “Mothers” and “JASDAQ” for emerging companies. It is a policy to reorganize.
On the 20th, the FSA gave a basic idea of the reorganization at a meeting of experts.
First, as examples of new designations of the three markets, the temporary names “prime market”, “standard market”, and “growth market” were given.
Prime consists mainly of companies with a large market capitalization in the first section of the Tokyo Stock Exchange. Standard is mainly composed of two parts, and Growth is mainly composed of Mothers companies.
JASDAQ companies are divided into standards and growth.
He also pointed out that the TSE Stock Price Index = TOPIX will be reviewed in line with the reorganization.
Currently, it is calculated based on the stock price of companies in the first section of the Tokyo Stock Exchange, but it should be selected from multiple markets in the future.
However, investors are paying the most attention to what standards the companies in the first section of the Tokyo Stock Exchange are allocated to the new market, but they have not shown a detailed idea.
The Financial Services Agency will compile reports by the end of the year, but TSE will eventually decide the names of new markets and the allocation of companies.