The role of Japan’s stock market is very similar to that of the U.S. and other stock markets in that it has four functions. The first, in our modern day, is to facilitate the market for trading activities, this function is done through the existence of exchanges. The JPX provides an infrastructure where buyers and sellers of Japanese equity can trade with each other easily, the exchanges it operates are the meeting place where they come to exchange money for equity. The second is to provide listing services for Japanese companies. In days past stock markets were primarily places were companies went to raise capital by offering ownership in the form of shares to the public. Even though trading services have surpassed that of IPOs, it is still a major function of the Japanese market. The third function is clearing and settlement services. Since buyers and sellers never actually meet face-to-face a clearing organization is necessary to ensure that buyers and seller are guaranteed settlement for their transaction...
... middle of paper ...
...s instructions to settlement facilities in the third phase of clearing. Settlement is where the seller is paid and the buyer receives the stock. The Central Securities Depository, in this market the Japan Securities Depository Center transfers the shares of stock and payment will be handled by the banks that the participants choose.
Data plays a big role in the Japanese stock market. The JPX collects, reports, and offers comprehensive data services to its market participants. The JPX collects mass volumes of data on trading activities such bid and ask prices, volume, and time and sales. They make data like this to give the market transparency, a more transparent market gives investors confidence in so they invest and trade frequently without fear. Transparency In world where information rules the market advanced data is available to traders in Japan.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Ticker: NASDAQ: CSCO Sector: Technology Recommendations: Strong Buy Price: USD $23 Industry: Networking Price Target: USD $32.50 Highlights: Absolute Return Target Price $32.50 Current Price $23 Upside Potential 50% I recommend a strong buy on Cisco’s stock with a target price of $32.50, a 50% upside from its current price. Cisco has a solid competitive advantage, because there are not many strong competitors in the market.... [tags: exchange rates, nasdaq, price]
2593 words (7.4 pages)
- Impact of Future Derivatives on Stock Market Volatility Derivatives has been the talk of the financial world after it was accussed as the primary reason for such a deep financial crisis that affecetd the global economy in 2007. Thus, the modelling of asset returns and judging the volatility of stock market and whether the derivatives have a substantial effect on stock market volatility, is still the key task for every finance professional as it provides much needed on risk patterns involved in investment process.... [tags: Stocks, Economy, Finance, Derivatives]
1577 words (4.5 pages)
- ... (3) To grant a grace period for bills that could not be settled because of the disaster before treating them as dishonored bills. (4) To exchange soiled banknotes for clean ones. (5) To assist customers in the reissuance of lost securities certificates. In response to the request, financial institutions have taken various measures to flexibly meet the financial needs of their customers. (Bank of Japan, 2011) Following the Great East Japan Earthquake, various rumors spread in parts of the market regarding the status of financial infrastructure in Japan, potentially unnerving overseas investors in particular.... [tags: stock, financial, yen]
2006 words (5.7 pages)
- Political leadership in the context of global political economy can yield different results, depending on the lens of analysis. In the context of economic policy crafting, effective political leadership can lead to equitable government regulation among public-private market interaction. In the context of social or more human-centric policy crafting, effective political leadership can alter a government’s ability to create rules that ensure reasonable reach across all persons involved. For instance, if political leader A were to set into law “financial institutions must place a higher threshold on the amount of money it holds in reserve;” it could send shockwaves through consumer markets dom... [tags: Shinzo Abe]
3084 words (8.8 pages)
- ... Therefore, the Nikkei 255 is considered to be a good proxy of the Japanese market capitalization ( Ugbede, Lizam, Kaseri & Idachaba, 2013). Market capitalization is a way how to determine the value of a company using the stock price, and to presume the likeliness of it’s growth (Amadeo, 2013). Meanwhile the financial system is defined as a network of markets and institutions that bring savers and borrowers together (Hubbard, 2000). Hence, detailed analysis of the Nikkei 225 allows to evaluate the impact of the earthquake on companies, including those that comprise the financial system.... [tags: inflation, market, economy]
1590 words (4.5 pages)
- Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda. In 1956, Nintendo’s president Hiroshi Yamauchi began to realize the limitation of playing cards business because it was viewed as a mere tool of gambling. In order to overcome the limitation, Nintendo struck a deal with Disney in 1959 which allowed them to put Disney characters on their playing cards.... [tags: Business Analysis]
991 words (2.8 pages)
- 1.0 Company Profile Caf. Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three. players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf. Expresso to the number one position in the marketplace.... [tags: Wall Street Crash of 1929, Stock market, Coffee]
3234 words (9.2 pages)
- The housing market in Tokyo and Sydney As the development growing faster and faster, new technology and commodities seems hard to sustain people’s appetites, however housing as a most traditionally costly and important commodity in human life is always to be the major issue for economists, socialists, government to concern with. Moreover the housing prices are emerged to be varied and oriented into different direction in different area or nations in this world. But in generally, the Housing price was tending to be increased in last few centuries.... [tags: Economics Real Estate Industry]
1914 words (5.5 pages)
- L’Oréal’—An Overview Company History L’Oréal was created in 1909 after Eugène Schueller, a Parisian chemist, invented the first artificial hair dye. The name came from the company’s first hair color, Auréole—the French word for “aura of light”. Schueller quickly diversified the company to incorporate soaps and shampoos and soon began to advertise on the radio. As demand grew for L’Oréal products, Chairman François Dalle took the company into the international consumer products market. In 1963, the company became public.... [tags: Business Analysis ]
1248 words (3.6 pages)
- Coach Inc. Case Analysis Six years after deciding to be an independent public company in late 2000, Coach Inc.’s net sales had grown at a compounded annual rate of 26 percent and the stock price had increased by 1,400 percent due to a strategy keyed to a concept called accessible luxury. Coach crafted the accessible luxury category in women’s handbags and leather accessories by differentiating themselves on price, but matching competitors on styling, quality, and customer service. The accessible luxury strategy mirrors a focus (or market niche) strategy based on low costs.... [tags: Business Finance Analysis]
1700 words (4.9 pages)