Free Essays

Japanese Stock Market

The complete processes involved in the Japanese stock market reflect that of a strong and dynamic financial force that influences the global economy as a whole. Through the years since the 1980’s, its strength surpassed nearly all other stock markets in the international arena. Such case has brought a very positive attitude towards pouring some more investments that came from global investors. The Japanese stock market involves the inclusion of companies under the basic commodities and other utilities sector.

The emphasis on electronics products and other export based earning domains have lead to the peak of its force in the global marketplace. There is no actual brokerage company that enables a foreign or private investor to put his money. For most investors, investing in Japan funds are the only ways to play the Japanese stock market, as no brokerage firms in Japan can open accounts for private foreign investors (Japanese Stocks, 2004-2005).

Their IPO or initial public offering of the stocks has brought excitement to international investors since it will fortify the stability condition of the market while earning residual profits both financial and industrial. In comparison with the American stock market, both rely on the surplus financial assets that each of the participating companies have. Moreover, the two giant stocks are still using the principles of having an open market for external investors (Petruno, 1993).

This kind of financial strategy enables the two economies to participate in large volumes of stock trading. In such a case, the Japanese market tends to absorb at least a little more when it comes to being an attractive financial environment.

References: Japanese Stocks. 2004-2005. Japanese Stocks-Equities in Japan. Abacus. Retrieved May 9, 2007 from http://chinese-school. netfirms. com/abacus-stocks-Japan. html. Petruno, Tom. 1993. Japan Etc. : Stock Pickers’ Delight?. International Herald Tribune. Retrieved May 9, 2007 form http://www. iht. com/articles/1993/06/24/tstox_0. php.