Truth Social going public net Trump estimated 2 to 4 BILLION

[SunsetBengal]

(03-23-2024, 05:26 PM)pally Wrote: stock is not usually considered acceptable collateral for a loan.  You can say what the value is today but cannot when the loan or bond is defaulted on

Sure it's not.. 

https://www.moneylion.com/learn/can-you-use-stocks-as-collateral-for-a-loan/#:~:text=As%20long%20as%20the%20assets,can%20be%20used%20as%20collateral.

Quote:How does using stocks as collateral work?

To take out a stock collateral loan, the lender will review the value of your stock portfolio and approve you for a funding amount accordingly. It is likely to also consider additional factors, such as your credit score and income level. 
Most of the time, you’ll only be able to borrow up to 50% of the value of your stock portfolio. If you have $10,000 in stocks, for example, most lenders won’t approve you for a loan worth more than $5,000. However, exceptions exist in certain cases. 
Once the lender approves you for the loan, you’ll receive the lump sum amount and make payments according to the agreed terms. In other cases where you want to take out a stock collateral loan, you’ll need to transfer ownership to the lender, who will own the stocks during the life of your loan. 
A loan with stock as collateral is known as a security-based loan, a stock-based loan, or a stock collateral loan. 
How to get a loan using stocks as collateral
Using stock as collateral for a loan can mean several different things. Take a look at the two most common scenarios.  
1. Margin
When you trade on margin, you borrow money from a broker to make an investment, while using that investment as collateral. This strategy is used by many professional investors to effectively own more stock without having to pay for all of it. 
The idea is that if the stocks increase in value, investors will be able to repay their debt and keep some for themselves. Unfortunately, this strategy comes with significant risk, and the potential for loss can be great. 
2. Security-based lines of credit
A security-based line of credit is offered by your stockbroker or bank. It will review the value of your stock portfolio and approve you for a credit line, typically up to 50% of your stock portfolio’s value. 
You’ll be able to withdraw from your approved credit line as you need. Plus, you’ll only need to pay interest on the amount you borrowed. 
Pros and cons of using stocks as collateral 
Like most financing options, you’ll find pros and cons to using stocks as collateral. Take a look at how these choices compare to understand whether a stock collateral loan is a good solution for you. 
Advantages

• Improve your chances of getting approved for a loan
• Help you access better interest rates
• Increase your potential funding amount for a loan 
• Use funds for whatever means you deem fit 
  

Disadvantages

• You’ll usually only receive 50% of the full value of your portfolio instead of the full value. 
• Since the value of your assets could fluctuate, you could owe more money than you’ve borrowed. 
• If you’re unable to make payments on your loan, your lender can liquidate your stock to recover their funds.