Category Archives: Stock Based Loans

Equities First Stock “Loans” – Deals Too Good To Be True

If having stock and want the wonderful deal from Equities First Holdings; you start by offering your shares as security. You will be charged 3 to 4% per year for 2 to 3 years, after which you pay them back and your entire shares will be returned back to your account. To many people, that is a bit cheap and also the deals come with cheaper interest rates. Even better, they offer a ‘non-recourse loan’ so in the event that everything turns out badly you can keep the money, and Equities First is left with your shares. So you don’t fear about the value, whether it appreciates or not. If it goes up, you reap the benefits without further charges. Equities First site even reveals to you this is an extraordinary approach to keep you away from the danger of holding the stock! You should simply express a goal to pay back the money towards the end of the plan. Another great thing is that your “main interests” are not affected.

Initially, the cash you get is put on a 3-day normal estimation of the share cost. It is to your greatest advantage to see that share cost is high as feasible for that period. Yet at a subliminal level, you are urged to knead your PR to push up the cost keeping in mind the end goal to get the best payout. Nevertheless, there are agreements with the arrangements. In case the stock value drops beneath the 80% of the provided loan, the loan is termed defaulted but there is nothing to fear as they do not come to your neck as seen with traditional loans. That rarely happens, but if it occurs, they give you a margin call and discuss with you on whether to end the deal or not. Some can decide to pay the cash or even walk away; that’s they keep the money but lose their shares. for more.