On 2 October 1961, the Second Section market was launched at the Tokyo Stock Exchange, establishing a system to make it easier for companies expected to grow to raise funds. The article also provides an overview of the requirements for the former Second Section market and the number of listed issues.
On 2 October 1961, the “Second Section market” was launched at the Tokyo Stock Exchange. Its purpose was to lower the barriers to listing shares and provide companies expected to grow with access to funding.
When the Tokyo Stock Exchange reopened after the war, there were 225 listed companies, primarily prestigious companies. As the economy shifted toward a high-growth trajectory, policy turned toward supporting “direct finance,” through which companies raise funds directly from investors rather than through banks, and the Second Section market was established.
The current number of listed issues is 2,110 on the First Section and 503 on the Second Section. Requirements for a Second Section listing included at least 800 shareholders and market capitalisation of at least ¥2 billion. Some Second Section companies grew and were promoted to the First Section, while others were effectively demoted because of conditions such as excess liabilities.
The Nikkei Stock Average closed at ¥1,486.52 on 2 October 1961.