Prime Market

The Prime Market is one of the market segments introduced by the Tokyo Stock Exchange in April 2022, intended for companies whose management centers on constructive dialogue with global investors.

Positioning

Among the Tokyo Stock Exchange's three market segments, the Prime Market has the strictest listing criteria, including in areas such as tradable share market capitalization. It is intended for companies with the scale and liquidity to be an investment target for many institutional investors, along with a higher standard of corporate governance.

How to Interpret It, and Points of Caution

Market segments merely indicate differences in listing criteria and the intended investor base; they do not guarantee a company's rating or its future stock price. When considering an investment in an individual company, it is necessary to check individual information such as earnings and financial condition.

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

Does being listed on the Prime Market make a stock a safe investment?
Listing on the Prime Market indicates that a company meets certain criteria, but it does not guarantee the safety of an investment or the future stock price. It is necessary to check individual companies' earnings and financial condition.
What is the difference between the Prime Market and the Standard Market or Growth Market?
They are differentiated mainly by factors such as tradable share market capitalization and the stage of the business plan — that is, by differences in listing criteria and the intended investor base. Companies choose one of these markets according to their business stage and policy.