Japan is having a bit of an investing boom thanks to the introduction of new investment accounts called NISA, Japan’s version of the Individual Savings Accounts from the U.K. Suddenly everywhere you look, Japanese securities companies are pushing these special accounts, which allow investors to avoid paying taxes on income and profits form assets held in the account. Japan’s investing world is quite different from the U.S. After the “lost decade” in the aftermath of the popping of the Tokyo Asset Bubble in 1991, many Japanese households swore off investing forever, and hold all their savings in normal bank accounts that yield 0.08% interest, if they’re lucky. One way companies coax people to buy their stock is by giving “shareholder gifts” twice a year. If you’ve got stock in McDonald’s or Starbucks, you’ll get a booklet of coupons for free products sent to you, while Ito Ham distributes a succulent ham to all shareholders to thank them for holding the company’s stock. Bandai gets in on the game too, giving gift coupons for your kids that let them pick up a new Gundam model, and for holders of 500 or more shares, a box of limited Idolmaster cards.
I’ll be right back, going to buy some Bandai stock…
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