What Are Stock Loans?
There are many misconceptions about stock loans. Some shareholders might not even know what they are or how they can benefit from them. So, here’s everything you need to know about stock loans.
A stock loan, also known as securities-based lending, is when a bank or private firm lends money to a borrower, and the borrower puts up stock as security to ensure they repay the loan. The borrower pays the loan back with an agreed-upon interest rate.
Stock Loan Solutions is one of many private firms that specialize in stock loans. We provide borrowers like you with the money you need for personal or business reasons. In terms of security, we accept shares that trade on most major exchanges including the NASDAQ Tallinn Exchange.
What's the Point of a Stock Loan?
It might seem obvious why a bank or private firm gives out stock loans. These entities make a profit by collecting interest from the borrower.
But why would a borrower want to borrow against their shares? This can be a smart move for many reasons. Some of the most common include:
- Having access to cash to quickly pay off expenses or debt
- Starting or expanding a business
- Securing immediate liquidity
- Managing tax liabilities
These are just a few reasons why a borrower would use a stock loan. Your unique situation will determine how you can benefit from your loan.
Estonia is located in the Baltic region of Northern Europe. Its neighbors are Latvia, Russia, the Gulf of Finland, and the Baltic Sea.
The country is widely-praised for its economy. It has the lowest debt-to-GDP ratio in Europe and is also the continent’s most entrepreneurial country. The country is energy self-sufficient and specializes in exports of electrical machinery and wood products.
More Information About the NASDAQ Tallinn Exchange
The NASDAQ Tallinn Exchange is one of many stock exchanges around the world. It’s a place for investors and companies to buy and sell securities.
This exchange is Estonia’s sole regulated secondary securities market. It uses the INET trading system for equities and the Genium INET trading system for fixed-income securities. The NASDAQ Tallinn Exchange is licensed by the Estonian Financial Supervision Authority.
If you are looking to buy or sell securities in Estonia, the NASDAQ Tallinn Exchange is the place to do it.
How Do Stock Loans Work?
Also known as securities lending, these loans are available to help investors keep the stock they own while still having access to the cash they need in order to make other investments. Our borrowers gain the opportunity to dip into the value of their non-marginable stock quickly and easily without having to wait a long time for the money.
Our loan amounts are dependent on characteristics of the collateralized security, including the number of shares, price, volatility, and additional criteria. By transferring your stock to us, you can be assured of receiving a loan against its value. All you have to do is make quarterly interest payments during the life of the loan. We keep the process simple: once you fully repay the borrowed amount, your stock will be transferred back to you.