About Our Founder Tokushichi Nomura | 6. Succession of Nomura Shoten
In 1904, Shinnosuke took over management of Nomura Shoten.
The concept of investor protection was virtually non-existent. It was not surprising that the public image of the kabuya (stock dealer) was extremely low. Most of the big moneychangers had gone into the banking business, while their smaller colleagues were joined in the stock exchanges by a collection of pawnbrokers, pickle dealers, rice merchants and others, often operating on a part-time basis. The situation hardly inspired public confidence.
Regarding the research dimension of the securities business, Shinnosuke was deeply convinced of its importance. Reflecting on the matter in his autobiography, he wrote:
I believed that the time would come for people to consider government securities and corporate bonds and stocks as better investments than conventional bank savings of various types. What was keeping the public from doing so was the generally poor character of securities dealers, and the fact that their knowledge of the market was really quite limited. It was our responsibility to scientifically analyze the merits not only of the speculative stocks that were most talked about in the investment community, but of all stocks available in the market - to determine their true value and assess them as possible investment vehicles. I firmly believed that this was the best course to true financial growth.