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Prime, Standard and Growth are the market district of Tokyo Stock Exchange.
TSE re編ed the market on April 4, 2022 and organized the former market segment into the following three.
- Prime Market
- Standard Market
- Growth Market
There are differences between company size, growth, liquidity and investment risk.
In this article, we will explain the differences in the TSE 3 market for beginners and the points to see in investment.
Why is there a market segment?
The market segment is to organize the company’s characteristics easily.
Investors can see the market segment, making it easier to determine what kind of brand they have.
For example:
- Stable large enterprise
- Corporate Philosophy
- A company that aims for high growth
However, market classification is the entrance.
When making investment decisions, it is necessary to see performance, financial, growth, and stock price.
3 Differences in the market
The following is a simple comparison of the TSE’s three markets:
| Market | Features | Image |
|---|---|---|
| Prime | Company Profile | Stable and global expansion |
| Standard | Business Center | Stable and talented companies |
| Gloss | Corporate Governance | High risk and high growth |
Prime has a lot of large stocks, and there is a tendency that there are a lot of companies in the global market.
Standard is easy to understand as it is a market located in the middle of it.
What is the Prime Market?
The Prime Market is the central market of the TSE.
We list large companies and companies with high liquidity with a focus on dialogue with global investors.
Main features include:
- Many companies
- Many easy-to-buy brands
- High international investors
- High level of demand for information disclosure and governance
Benefits and Notes
| メリット | Notes |
|---|---|
| Stable | There are brands that are hard to grow |
| More information | The value movement is relatively high in the center of large stocks |
| Easy to buy and sell | When the market falls |
It is a relatively easy-to-see market for beginners to learn company analysis first.
What is the Standard Market?
Standard market is a market with a medium-sized company and a stable business foundation.
JASDAQ has a wide range of companies.
Features include:
- There is a community-based company
- There are strong companies in the niche field
- There are long-established companies and high dividends
- More famous than Prime
In the standard market, there are firmly profitable companies in the local market.
Therefore, it is an important market for investors looking for allocation and dividends.
What is Growth Market?
Growth market is a market for companies with high growth potential.
We have inherited the flow of the former mothers market, and we have listed many companies such as AI, IT, Bio, and SaaS.
Growth Market Features
| メリット | Notes |
|---|---|
| Rapid growth expectation | High value movement |
| Strong theme | There are many Japanese companies |
| Increased stock price | Unexpected business results |
Growth market is a dreamy market, but it’s a big risk.
Although it may grow in a short time, it may be suddenly dropped if the expectation is peeled off.
Points to note for beginners
Growth is not always extended
It may seem that every company grows from the name of the Growth Market.
However, some companies have a higher share price with only growth expectations.
If the business performance does not reach the market expectation, the stock price may decrease greatly.
Small stocks have a strong value movement
In particular, there may be fewer volumes in the Grow market and some standard brands.
If the volume is low, the stock price is much easier to move with a little big order.
What is the production capacity?
The volume is the number of shares sold.
Brands with low volume are difficult to buy when you want to buy, and may be difficult to sell when you want to sell.
No safety in Prime
Even in the prime market, stock prices are lower.
Even large enterprises will be affected by business performance deterioration, economic re ement, interest rate rise, and foreign exchange ctuations.
It is dangerous to judge safety only by market segment.
Investment image by market
The investment image per market segment is as follows:
Prime orientation
- LongTermInvestment
- Stable
- idend
- Operation of large-scale stock center
Standard orientation
- Corporate Research
- Search for allocation
- Search for high dividends
- Investment in niche companies
Gloss
- Growth Expectations
- Theme investment
- High risk tolerance
- Focus on future
It is important for beginners to see from the market that fits their risk tolerance.
Where should you see a beginner?
When a beginner sees the market segment, check the following four points.
- Are sales growing?
- Is it profitable?
- Is financial sound
- How much market capital is
If you decide only the market segment, you may miss a good company or misunderstand a high-risk company.
Long-term investment is critical to continuous growth
The stock price will be moved by popularity and theme in short term.
In the long term, corporate profit growth, cash flow, and competitiveness are important.
That’s why it’s important not only to see market segments, but to see how companies can grow continuously.
- TSE is divided into Prime, Standard and Growth.
- Prime has many large-scale stable companies
- There are many medium-sized companies.
- High-risk while Growth is expected
- No investment decisions only in market segments
Let’s start with the following three things:
- View corporate profit
- Consider risk tolerance
- Focus on Decentralized Investment
Market classification is the start point of corporate analysis.
It makes it easier to make investment decisions more quietly by confirming financial results and financial results from there.
Concept
An instant understanding of the differences in the TSE 3 market.
Text
- Main: Explanation of TSE 3 market
- Sub: Prime Standard Growth
Color
- Blue
- Green
- Orange
Focus on market-specific different.
構成
- Left: Prime
- Central: Standard
- Right:Growth