The leading indicators when determining the
eligibility of a stock as collateral are going to be short-term trading volume,
long-term trading volume, exchange, volatility, share price, trends, and
filings. 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. Good stocks, like good
investments, always get the best terms. Stability, trading volume and price are
factors in determining the LTV.
