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BusinessTechnology140 words1 min read

Kioxia Shares Fall as Margin Debt Hits Record High

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Kioxia is a Japanese company. It makes computer chips. Its share price has fallen a lot.

One big reason is margin debt. This is money that people borrow to buy shares. Kioxia has 920 billion yen of this debt. This is the biggest amount of any company on the market.

Many people bought Kioxia shares with borrowed money. Now they need to sell. But trading is slow. So it will take time to fix this problem.

There is also bad news from the U.S. Technology shares there have fallen. One company called Coreweave saw a big drop. This made people worried about Kioxia too.

There is another problem. Chinese companies now make more computer memory chips. This is strong competition for Kioxia.

In four months, Kioxia's market value has become one third smaller. This shows the company's big trouble.

Vocabulary15 words

margin debt
money you borrow to buy shares
memory
a part of a computer that stores information
competition
when companies try to win against each other
market value
how much a company is worth
share price
the cost of one part of a company
trading
buying and selling
chip
a small part inside a computer
borrowed money
money you take and must pay back
company
a business
worried
feeling afraid something bad will happen
fall
go down
biggest
the largest of all
problem
something difficult
technology
machines and computers
drop
a fast fall

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Quiz

1. What is Kioxia's main business?
2. Why is 920 billion yen important?
3. True or false: Chinese companies are now strong competitors in memory chips.

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Fill-in-the-blank listening

Play the audio again and fill in the missing words as you listen.

Kioxia is a Japanese company. It makes computer _____. Its share price has fallen a lot.

One big reason is margin debt. This is money that people _____ to buy shares. Kioxia has 920 billion yen of this debt. This is the biggest amount of any company on the _____.

Many people bought Kioxia shares with borrowed money. Now they need to _____. But trading is slow. So it will take time to fix this problem.

There is also bad news from the U.S. Technology shares there have fallen. One company called Coreweave saw a big _____. This made people worried about Kioxia too.

There is another problem. Chinese companies now make more computer memory chips. This is strong _____ for Kioxia.

In four months, Kioxia's market value has become one third _____. This shows the company's big trouble.

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