Articles
Stock exchanges exist for companies to raise money by allowing the public to participate through shares trading. When you distill the process down to the core, think of the bourse as your local store. You buy 20% of the equity and the store owner will take that money probably to…
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Most of the public assumes that a stock exchange is just a marketplace where people buy or sell stocks. That is a correct assumption. But that is not all that a stock exchange is. Defining a Stock Exchange in a more particular sense, they are really firms or an organization…
Read moreWhat you choose to do with your money once you’ve received a stock loan is up to you. That being said, there are more and less financially sound ways to do this, and learning to navigate these decisions will determine whether or not you will be able to pay that…
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From the perspective of the lender, stock loans can have a number of pitfalls if not handled correctly. Usually, this occurs as a result of an unscrupulous third-party lender attempting to operate outside standard guidelines. These lenders often market their loans as "non-recourse" in nature, which means that there is…
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Before anything else, it must be said that if you are looking at the stock market as a launchpad to become the next Warren Buffett or George Soros, then you are in the wrong career. The possibility of that occurring is like winning the Powerball lottery for $300 million in…
Read moreBorrowing money against the value of stocks is a smart more many investors take to increase their own wealth without paying a dime in taxes. Remember, loans are not taxable. As long as you take out a loan against your securities, even if you default on the loan and the…
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Although stock trading is synonymous with Wall Street, it wasn`t the first stock exchange in the US. That honor actually belonged to the Philadelphia Stock Exchange, which predated the New York Stock Exchange by two years. The early days of stock trading may be compared to an extremely elite club…
Read moreNon-recourse stock loans can be very appealing to investors because they come with little risk. In a non-recourse loan, the lender requires stocks as collateral. At the end of the loan period, should the borrower not be able to pay back the loan, the lender keeps the collateral. This is…
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Trading of financial instruments at first started to be very straightforward. It goes from one creditor to one debtor. In the 1100`s agricultural debts in France have started to be bought and sold by merchants, giving rise to a market dealing not with fruits and vegetables, but with paper representing…
Read moreStock Exchanges are a logical step for the economic systems, from the barter system of the prehistoric ages. We went from bartering with goods, to usage of currencies, to production of debt and other financial assets, and then to the establishments of exchanges. The history of the stock exchange is…
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The stock exchange has existed for 200 years now, and yet it`s still a mystery to some people who think that wealth is concentrated among the rich and moneyed who manipulate the bourse for their own benefit. Perhaps it`s best to demystify stock exchanges by comparing it to your local…
Read moreBorrowing against stocks is for anyone serious about making money in the stock market. Investing in stocks takes a lot of liquid assets and makes them unusable for a long time until profits can be attained. An investor can choose to struggle and scrape by during this time, or he…
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Simply put, a stock is a certificate that represents ownership of a said corporation, and the amount of ownership is based on how many shares one possesses in relation to how many shares are outstanding (i.e. how many shares are present in the market). While it is a unit of…
Read moreLending against stocks, or securities lending, can be a complicated issue for many new investors or those who have never had to take out such a loan. One may even question where to procure such a loan. Thankfully, there are plenty of opportunities to do so from well-established and vetted…
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Borrowing against the stocks in your portfolio comes with inherent risks, just as any financial maneuver might. But it is important to understand the nature of the risk involved and how it might differ from taking out a regular loan from the bank. By understanding these risks, investors can make…
Read moreThe choice to invest in the stock market is one that can greatly improve one`s financial situation in the long term. However, stocks tie up much of an investor`s assets with the prospect of more money down the line but no funds available for any sudden costs that arise here…
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A popular misconception of a financially secure investor is that he has large amounts of spendable money at his disposal. This is often not true due to the very thing that makes him financially secure. Investments in the stock market take a lot of money and often use much of…
Read moreStock loans can refer to a number of different forms of borrowing money, usually against the value of one`s stock. Some popular kinds of stock loans are non-recourse loans, borrowing against the owned stock, and margin agreements. A non-recourse loan is one that is made, often with a third-party lender,…
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The International Securities Lending Association or ISLA is an industry trade group that was founded to represent the common interests of the Securities Lending Sector. With its headquarters in the United Kingdom, the main members are financial service firms from the UK and Europe. These said financial firms deal with…
Read moreInvesting has always been seen as the goose that lays golden eggs; what most people should know is this so called golden goose is not as stable as most people think. Other people also see the financial advice industry (financial planners, portfolio and hedge fund managers mostly) as unnecessary and…
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What is a stock exchange? To put it simply, a stock exchange is basically a marketplace where people can buy and sell products, but the products are financial in nature, specifically equities, bonds and other financial products. One important thing to note: only listed securities can be traded in an…
Read moreWhen many people think about the stock market, they picture the New York Stock Exchange. But there are many prominent stock exchanges in the world. Below is a list of the 30 largest exchanges and a brief description of the top 10 exchanges. 1. The New York Stock Exchange: There…
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Securities lending happens whenever an owner of a financial tradable asset loans his or her asset to a borrower, most often with a fee. As a refresher, securities are financial instruments proving possession of whether ownership in a company, i.e. like shares and the equity markets, to ownership of debts…
Read moreBorrowing against stocks may seem like a risky move, but when done correctly it can greatly improve your financial situation. Many investors especially those just starting out, find themselves having far less money than their net worth would indicate. While you might be willing to wait years for a big…
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Wall Street's Hottest Loan Product: Borrow Against Your Stocks
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