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Securities
Based Lending - An Alternative Source of Funding |
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You may have heard the term
“stock loan”, “stock-secured financing” or “securities based
lending”. All of these refer to the type of lending program where
the borrower’s securities (stocks, bonds, mutual funds or options)
are pledged as collateral for a loan. These are “non-purpose”
loans and no lien is placed upon any asset such as real estate or
personal property. The securities alone stand as collateral for
the debt. Proceeds of the loan may be used for any purpose except
to purchase or carry securities. |
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Ó Global
Security Lending |
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