Borrowing money on your stocksGives advice on investments and loans using securities as collateral. Money-management margin account feature; 75 percent loan ceiling; Advantages and disadvantages; Advice.Weaver, PeterNations Business
This article discusses the following fundamentals of borrowing: (1) credit worthiness, (2) kinds of loans, (3) amount of money needed, (4) collateral, (5) loan restrictions and limitations, (6) the loan application, and (7) standards which the lender uses to evaluate the application....
You can use securities you own as collateral to borrow money on margin. Money borrowed on margin can be used for whatever purpose you like—from purchasing additional securities to funding a home improvement project and paying for a car. Be sure to understand the risks associated with borrowing...
6. Home equity lines may not be used as a bridge loan, to finance a start-up business, to change the square footage of the collateral, to invest in securities, or to repay a Schwab margin loan. Second lien Home equity lines are only available with an eligible first lien Schwab invested...
What are the disadvantages of using the payback period as a capital-budgeting technique? What are its advantages? Why is it so frequently used? What is the difference between depreciation and facilities capital cost of money? What is a cr...