A Margin Loan or an Asset-based Line of Credit? Long ago and quite far away, it was once possible to buy $1,000 worth of stock, then use it as collateral for loans of as much as 90% of the value on some exchanges. That loan could them be used to buy $900 worth of additional stock. Once again, the stock owner could get a stock margin loan for 90%, giving
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”
One of the most frequent calls we get is about whether a particular portfolio qualifies for our versatile LeverageLine securities-portfolio credit line. The rules are pretty simple, but you can get more details on our website by visiting our page for Loan Requirements. You can also check on your client’s securities history yourself by clicking here. If the non-IRS/401K stocks, mutual funds, bonds, ETFs, etc. in your portfolio. All have
