Japanese Business Glossary

海外FX (kaigai fx), overseas foreign exchange or overseas forex, refers to foreign exchange trading accounts offered by brokers based outside Japan. These brokers often provide higher leverage than domestic brokers, allowing traders to control larger positions with less capital. For example, some brokers offer leverage as high as 1,000:1 or more. A notable feature of overseas FX brokers is the zero-cut system, which protects traders from incurring negative balances. If a trader's losses exceed their account balance, the broker absorbs the loss, ensuring that the trader does not owe more than their initial deposit.

Many overseas brokers offer attractive bonuses for account opening and deposits, which can provide additional trading capital and are popular among traders. Despite being based abroad, numerous brokers offer customer support and services in Japanese, making it easier for Japanese traders to use their platforms without language barriers.

関連会社 (kanren gaisha) refers to an "affiliated company" or "associated company." In Japan, this term is used to describe a company that has a certain level of relationship or connection with another company, typically through ownership stakes, business transactions, or shared management interests.

An affiliated company might be one in which another company holds a significant, but not majority, share of ownership. This could mean owning a minority share, often between 20% and 50%. Companies can also be considered affiliated if they have strong business ties, such as through joint ventures, significant supplier-customer relationships, or collaborative projects. Additionally, if companies share board members or senior management, they can be classified as affiliated due to the overlapping influence and interests.

In Japanese, 手当 (teate) typically refers to various forms of allowances, benefits, or compensations provided to employees by their employer. These can include family allowance, which is support provided for employees with dependents, housing allowance, which is assistance with housing costs, and commuting allowance, which covers commuting expenses. It also includes overtime allowance, which is compensation for overtime work, holiday work allowance, which is extra pay for working on holidays, and special allowances, which are various other types of allowances depending on the company's policies and the nature of the work. These allowances are meant to support employees in their personal and professional lives and can vary widely from company to company.

給料 (kyuryo) is the Japanese term for "salary" or "wages." It refers to the regular payment made by an employer to an employee for their work or services.

In Japan, kyuryo is typically paid monthly. It can include various components such as the base salary (基本給, きほんきゅう, kihonkyu), allowances (手当, てあて, teate) which may cover transportation, housing, or other expenses, overtime pay (残業代, ざんぎょうだい, zangyodai), and bonuses (ボーナス, bonasu) often paid biannually in summer and winter.

長 (cho) in Japanese means "chief," "head," or "leader." It is commonly used to denote someone in a position of authority or leadership within an organization, institution, or group. For example, 社長 (Shacho) refers to the president or CEO of a company, and 校長 (Kocho) refers to the principal of a school. The term can be attached to various titles to indicate the top person responsible for overseeing operations and making critical decisions. The role of cho is pivotal, as they guide the direction, strategy, and overall management of their respective organizations.

減資 (genshi) refers to the reduction of a company's capital. This process involves decreasing the company's stated capital on its balance sheet and is typically undertaken for several reasons, such as restructuring the company, offsetting accumulated losses, or returning excess capital to shareholders.

The process of genshi must be conducted according to legal procedures, including obtaining approval from shareholders and sometimes regulatory authorities. There are different methods of genshi, such as reducing the par value of shares, canceling a portion of the shares, or buying back shares and then canceling them. This reduction can improve the financial health of a company by aligning the capital structure more closely with its operational needs and market value.

While genshi can signal a company's attempt to streamline its operations and improve financial stability, it may also raise concerns among investors about the company’s past performance or future prospects. Therefore, clear communication and strategic planning are essential when a company decides to undertake a capital reduction.