Securities Law

Securities Law
A. B. Nicholas Support

The Dangers of Nonrecourse Stock Loans And How To Avoid Them

Why an Institutionally Managed, SIPC/FINRA-Member Lending Facility¬†Should Be Your Only Securities-based Credit Line Consideration¬† A nonrecourse, transfer-of-title securities-based stock loan means exactly what it says: You, the title holder (owner) of your stocks or other securities are required to transfer ownership of your securities to a third party before you receive your loan proceeds. The loan is “nonrecourse” so that you may, in theory, simply walk away from your loan

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I Can Get Get a Margin Loan from My Stock Brokerage Account. What Makes ABN’s LeverageLine Different?

Sure. You CAN get a margin loan, usually very easily with a couple of clicks, for any of your stocks. It will be a 50% loan-to-value cash piece, and you will have the freedom to invest it in more of the same stock. Your brokerage will automatically assume you intend to buy more of the same stock in the same account. You are not expected to use a “purpose loan”

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The Strict ABN “Nonrecourse Stock Loans” Prohibition Policy and Why

Important: Please note that it is a violation of your Agent contract with A. B. Nicholas to offer any form of nonrecourse stock loan on your website, in an email, or anywhere else. Individuals who are known to have referred clients into any such program or who have such materials on their websites will be considered in breach of the affiliate agreement and terminated immediately. It is the firm position of A.

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