Tokushichi II at the timeMeanwhile, Japan's stock market continued to flourish. In 1907, just under 15 million shares were traded on the Tokyo Stock Exchange. The number of issues listed was 154, with a total capitalization of over ¥770 million. Shinnosuke approached the market aggressively during this period and then, sensing that a major turnaround was at hand, reversed his position and began selling as the market approached its height. In the second half of January 1907, the market plunged dramatically. Whereas many brokers suffered very badly in the ensuing weeks, Shinnosuke emerged from the fall with significant gains and thus further strengthened his firm's financial basis. The fierce trading of this period was the source of many a trader's tale in later years, and the attention focused on Nomura's success in avoiding the fall fixed the company firmly in the public eye. There was nothing fortuitous about Shinnosuke's victory: it was based on extensive, distilled market experience supported by the fruits of research. The whole episode reinforced Shinnosuke's convictions about the correct approach to the securities business and strongly affected his outlook in the years ahead. This period also marked a turning point in the company's affairs for yet another reason. Tokushichi I retired, handing over full control to Shinnosuke, who now assumed the name Tokushichi II.
