Relationship of credit balances and stock prices

Credit balance and is, "credit buying the rest" that the minute you are buying a stock on margin, is called "Shin'youurizanri" to have (short selling) worth of selling shares in credit. Also is called a numerical credit magnification of "credit buying remaining ÷ sell the rest".

Normally credit magnification is 1 or more times, that is, to buy the rest of it is many. This credit buying the rest, will have a significant impact on the future of the stock price.

Credit magnification is high (= buying very many remaining), work is strong selling pressure in the future stock price. Because, in a manner that many credit called "credit institutions", because it is necessary to settle within six months. In other words, the current credit buying remaining minutes, it means that it is put up for sale within six months, it will be an element of the decline in stock prices.

Point you want to emphasis, is the change in credit magnification. For example, if the credit magnification in the last few months has been reduced, credit buying remaining has decreased, or because is that short selling has increased, believed that the future of the stock price decline risk was Usuma~tsu, we can say that the chance of purchase.

But in fact, even as credit magnification has improved, it is not simply limited to the work on the plus to stock prices. The reason is that the credit transaction because do not know the exact pressure to If you do not see until the breakdown There are two ways of "institutional credit" and "General Credit (indefinitely credit)" stock price.

Generally are credit transactions are available in the "institutional credit", which order to perform the balance of the shares through the stock exchange, has deadline is provided that up to a maximum of 6 months. That is what you have to talk above, institutional credit is the premise.

On the other hand there is also a system called "general credit (indefinitely credit)", this is a credit transaction, which is operated by the rule that each securities company decided individually and not through the stock exchange. General credit does not mean the settlement period has clearly decided, seems securities company that has established indefinitely often.

In other words, even though an increasing number of credit balance, depending on whether it is institutional credit or general credit, impact on the stock price will come at all different. If, for example, "credit buying remaining" all institutional credit, because the settlement will come within six months, but will be in the future of selling pressure, because it does not have to be the settlement date if if all general credit, and be said to be simple to selling pressure I do not. In the famous brand such as the first section of the Tokyo Stock Exchange, I think that it is good to not have to worry too much because the institutional credit for the majority is occupied, but it is better that it was confirmed prima facie case of low market capitalization is small and liquidity stocks.