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Stock Loan
Program |
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We
provide investors,
officers, directors, and large shareholders of
publicly traded companies access to loan programs
only once available to large institutional
investors.
The product is designed as a straight loan against
equity.
Loans are against securities that trade on
the NYSE, NASDAQ, AMEX, OTC, and Pink Sheets. Some
securities listed on foreign exchanges.
Stock Loan programs,
Loan to values are higher than margin loans.
Stock Loans are non-recourse with no penalties or
personal liability back to the borrower if the
stock declines in value or borrower defaults on
the loan.
Interest Rates range as low as Prime, paid
quarterly.
No credit or background checks.
Stock Loan Features:
Liquidity, market risk protection, unlimited
growth potential, and tax savings allow people
with relatively large stock positions to stay in
the market and still sleep well at night. There
are other benefits as well. Stock Loans result in
up to 90% cash liquidity without requiring any
shares to be sold. This immediate cash liquidity
can then be used to fund important financial
planning programs. Because stocks are not sold to
create up to this 90% liquidity, the investor
still owns the underlying portfolio and can fully
participate in its upside growth without caps or
other artificially imposed limitations.
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Stock Loans Up to 90% Protected |
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 Stock
Loans allow existing investors to stay in the market and new
investors to enter the market – without fear. In fact,
derivative-based programs such as Stock Loans have been
credited with preserving market stability and benefiting the
entire economy. In a Washington Post (November 19, 2002)
article, Federal Reserve Chairman Alan Greenspan cited that
investors’ abilities to weather the “extraordinary shocks of
the huge stock market decline went unexpectedly well because
of innovations in financial markets that spread investment
risks far more widely than in the past.” Greenspan went on to
say that financial market innovations such as “the widespread
use of derivatives that allow the breaking down of various
types of risks that can be sold to parties able to bear them,
and other complex financial products have significantly
lowered the costs of, and expanded the opportunities for,
hedging risks.” |
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If Collateral Goes Up… |
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If Collateral
Goes Down… |
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