What Is the Stock Symbol for Toyota?
In 2008, Toyota toppled General Motors from its position as the world's largest car seller with sales of over seven million during its first three quarters. That is an achievement that makes Toyota worthy of an investor's attention.
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Identification
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Toyota is a publicly owned corporation based in Japan that operates on a global scale and has major operations in the United States. Toyota stock is traded on the Tokyo Stock Exchange and New York Stock Exchange (NYSE) under the stock symbol TM. For the Tokyo exchange, use code number 7203.
History
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In 1933, with encouragement from a Japanese government pressured by its war in China, the Toyota Automatic Loom Company started a new division with the goal of manufacturing automobiles. By 1935, they managed to produce their first passenger car and in 1937 the division was spun off as a separate company under Kiichiro Toyota. During World War II, Toyota manufactured mostly trucks for the Japanese war effort. As resources dwindled, they produced very simple vehicles---even to the extreme of placing only a single headlight on the hood. In the 1950s, Toyota began to expand, and by 1957 ventured into the U.S. market with a small dealership in California. The company became a major importer with the success of its Corolla model, introduced in 1965, and in the 1970s it became the largest U.S. automobile importer. During the 1980s, Toyota began to build and operate manufacturing plants in the U.S., as well as continuing a program of worldwide expansion. Interestingly, as of 2008 the company continues to manufacture textile manufacturing equipment, including looms.
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Types
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Toyota is run from its three Japanese headquarters facilities in Aichi, Nagoya and Tokyo. Although the automobile and truck divisions are what Toyota is known for, this is a diversified corporation. Other divisions include biotechnology, financial services and aerospace. They also have research initiatives to develop plug-in hybrid and all-electric cars.
Size
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In 2007, the company's automobile and truck production reached a record 9.37 million vehicles. Revenues (in U.S. dollars) for fiscal year 2008 were $232.4 billion, with operating income of $22.4 billion and net income of $17.15 billion. Toyota's 2008 assets totaled $323.97 billion, with equity of $118.47 billion. From 2003 to 2008, revenue grew at an average rate of 1.85% annually and dividends increased by over 36% annually. In 2008, the company employed over 316,000 people.
Features
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Because Toyota is a non-U.S. corporation, there are a couple of things to keep in mind. The stock is traded on the NYSE, so you purchase it like any American stock, by placing an order with your broker. However, what you are buying are American Depository Receipts (ADRs). ADRs represent shares in a foreign company. The actual shares are held by American financial institutions in other countries and are used to reduce costs associated with purchasing foreign securities. ADRs are issued in differing denominations. For Toyota, one ADR equals two shares of common stock. When you receive dividends or sell shares, the funds you receive are net after any foreign taxes and costs of currency conversion. You still incur any risks related to changing currency exchange rates.
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