The significance of margin financing and securities lending to securities companies

Financing means that investors are optimistic about the rise of the stock market, borrow money from securities companies to buy stocks, return the money to the securities companies at maturity and pay certain interest.

Securities lending means that investors are optimistic that a stock will fall, borrow this stock from a securities company to sell it, buy it back at a low level in the future, and pay interest.

It is equivalent to increasing the income and profit growth point of securities companies, which is good for securities companies.