>>70850375It's good that japan is wising up but overall it will not matter until it gets to the point of public outrage or internal investigation, and it may not well get there, only general awareness.
>Some info from one of the commentors, DeepL translation:Mechanism of Occurrence
Investors engage in short selling (margin selling).
Short selling increases, and securities finance companies run out of stock to lend.
When there is a shortage of shares, securities finance companies borrow shares from institutional investors and lend them to sellers.
At this time, the sellers are charged interest on the borrowed shares (reverse daily interest).
Impact
Reverse daily interest: Sellers bear the reverse daily interest, which increases the pressure to repurchase shares.
Stock price rise: Buying pressure increases and stock price may rise.
A "step-up" may occur when sellers, unable to bear the burden of the reverse daily price premium, buy back shares at a higher price.
Impact on Investors
Investors who are short sellers must bear the reverse daily interest.
Investors who are buying will receive the reverse daily price.
When the shortage of shares is resolved, the stock price may plummet.
