An index of prices on the Tokyo Stock Exchange. It was originally known as the Nikkei Dow Jones Index and first calculated on 16 May 1949, based at 176.21. The Nikkei Stock Average is a price-weighted index of 225 Japanese companies representing 19% of first section issues, and accounting for about 51% of market value. It was restructured for the first time in its history in late 1991 by its administrator, the Nihon Keizai Shimbun (Japan Economic Journal) financial newspaper group, to try to reduce the impact of futures-related trading on the index (Nikkei is a shortening of the full name of the newspaper group). Membership of the index is now reviewed annually, when up to six members can be replaced if their shares become illiquid or unrepresentative. Previous changes only occurred when companies were taken over or liquidated.
http://www.nni.nikkei.co.jp/FR/SERV/nikkei_indexes/nifaq225.html Information from the Nikkei Net Interactive website
Subjects: Financial Institutions and Services.