The Tokyo Stock Exchange wants to make it easier for individual investors to buy and sell Japanese stocks. It’s considering reducing the minimum unit size of shares to allow smaller trades.
Companies listed on the TSE are currently traded in minimum units of 100 shares.
That means an individual wanting to buy a stock priced at 1,000 yen a share would need to spend at least 100,000 yen to make an investment, or about 650 dollars. The unit amount is higher than what’s found on exchanges in the US and Europe.
The TSE hopes to lower the amount of money needed to buy shares by reducing the minimum unit size. The aim is to draw more individuals into the markets, including younger investors.
The potential change comes as stock prices in Japan have risen and the country has expanded its tax-exempt investment program called NISA.
Bringing in more investors could also cause challenges for firms. These include higher costs for shareholder meetings and more proposals from investors.
The TSE plans to set up a meeting of experts to discuss specific measures. It aims to complete a review of potential changes and problems by around March next year.