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Market Segments

Market segments are the framework under which the Tokyo Stock Exchange classifies listed companies according to factors such as business scale, growth stage, and intended investor base, and since April 2022 they have been reorganized into three categories: Prime, Standard, and Growth.

The Three Market Segments

The Tokyo Stock Exchange today consists of three segments: the "Prime Market," for companies with the scale and corporate governance standards to be an investment target for many institutional investors; the "Standard Market," for companies that meet the basic criteria for an investment target in a public market; and the "Growth Market," for companies with high growth potential whose business is still developing.

How to Interpret It, and Points of Caution

The market segments were reorganized in April 2022 with the aim of resolving the overlapping positioning and lack of clarity in the previous framework of the TSE First Section, Second Section, Mothers, and JASDAQ. Differences between segments indicate differences in listing criteria and do not guarantee the investment value of any individual company.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

Why were the market segments revised?
They were revised in April 2022 with the aim of resolving overlaps in the positioning of the previous market segments (TSE First Section, Second Section, Mothers, and JASDAQ) and the difficulty of understanding the listing criteria, in order to achieve market operation that is easier for investors to understand.
Do market segments affect a company's stock price?
A change of market segment can sometimes attract investor attention as a factor, but it does not guarantee the subsequent movement of the stock price.

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