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Tokyo is trying to woo millennials with single share purchases
[TOKYO] Buying Nintendo Co shares in Tokyo today would mean a minimum investment of about 3.15 million yen (S$38,500). What if the entry cost is the same as a US$300 Switch console?
The Tokyo Stock Exchange is hoping that a plan to allow investors to buy a single stock, rather than the minimum lot size of 100 shares, will encourage millennials to take part in the world's third-biggest equity market.
The plan would be similar to owning a unit in an exchange traded fund, where the investment would mirror moves in the stock, said Japan Exchange Group spokesman Satoshi Mimura, confirming an earlier report from national broadcaster NHK. The investment wouldn't have any voting rights but would pay dividends, NHK said.
The idea is among other options the Tokyo Exchange is considering to entice more retail investors, Mr Mimura said. No other details of how the plan or what costs would be involved were given by the Tokyo Exchange.
Before 2014, listed companies could decide on eight different lot sizes, until that was standardised to 100 shares last October.