Nikkei: "Minimum Investment Amount Still High"
The number of stock splits by listed companies in Japan reached its highest level in 12 years for the period from April to September this year.
According to the Nihon Keizai Shimbun (Nikkei) on the 26th, there were 124 cases of stock splits from April to September this year, an increase of about 20% compared to the same period last year, marking the highest figure in 12 years. A stock split refers to lowering the par value of a stock and increasing the number of shares in circulation accordingly.
In Japan, the minimum investment amount for stocks is calculated by multiplying the price of one share by the trading unit of 100 shares. Therefore, when stock prices are high, it becomes difficult for individuals to invest. In response, the Tokyo Stock Exchange encouraged companies in April to ensure that the minimum investment amount for stocks could be around 100,000 yen (approximately 940,000 won).
As of the previous day, the average minimum investment amount for Japanese stocks was about 200,000 yen. This is about 40,000 yen lower compared to 10 years ago.
The Nikkei explained that the increase in stock splits is intended to allow individuals to purchase stocks with smaller amounts of money. It also reported that stock splits are actively taking place in domestic sectors such as retail and dining, and that in many cases, high-priced stocks with a minimum investment amount exceeding 500,000 yen at the time of the stock split announcement have been targeted.
Additionally, the Nikkei pointed out that in order for individual savings to flow into the stock market, it is necessary to lower the minimum investment amount, including a review of trading units for stocks.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
