Nikkei 225

Nikkei 225 (日経平均株価, Nikkei Heikin Kabuka^?), commonly called the Nikkei index, is the most popular stock index in the Japanese market, made up of the 225 most liquid stocks listed on the Tokyo Stock Exchange. Since 1971, it has been calculated by the newspaper Nihon Keizai Shinbun (Japanese Business Journal), from whose initials the name of the index comes.

These securities are characterized by their high liquidity. It has its base 100 on May 16, 1949. It reached a maximum of 38,957.44 on December 29, 1989.

Securities in the Nikkei index are weighted by price and not by capitalization, although this calculation differs from a simple average as the divisor is adjusted.

The list of its components is reviewed annually and the changes become effective at the beginning of October, although in exceptional cases, changes may be introduced on other dates.

History

The Nikkei was first published on May 16, 1949.

Composition

The Nikkei 225 Index is comprised of the 225 largest companies selected from the 450 most liquid stocks in the First Section of the Tokyo Stock Exchange (TSE), and the list is renewed every year.