Just a few basics to know when a client is
considering a Stock Loan
* From 3% Fixed interest Rate: This means it can be as low as 3%
and can be Higher. It depends upon the type of security owned.
(Interest Only)
* Up to 80% of Value: This means it can be as high as 80% LTV and
can be Lower. It depends upon the type of security owned.
Stability, trading volume and share price are factors in determining the
interest rate, term and Loan to Value.
Good stocks, like good investments, always get the best terms.
The most attractive interest rates and terms and conditions are available to
those stocks with good strong and steady volume and price, and low volatility.
Prices over $5/share typically get best prices as long as volatility is low and
volume is strong and steady. Exxon, Proctor and Gamble, and Cisco are considered
blue chip stocks and ideal cases.
Strong and steady volume is highly prized as it allows some predictability
baselines. The leading indicators when determining the eligibility of a stock as
collateral are going to be exchange, volatility, share price, liquidity, trends,
filings, short term trading volume and long term trading volume.
As you know, there are thousands of securities
ranging from Penny Stocks to Blue Chip Stocks and everything in between. A Stock
Loan request is carefully evaluated based on many different factors.
If you are not sure or need some information, always visit the "BROKER
RESOURCES" section of our web site for detailed information. A wealth of content
available to view and read. Most of the time, a Stock Loan is a cut and dry
process and a quick closing.
