Quote:
Originally Posted by Mike Oxlong
So a bank will lend you $100,000 just to go play the stock market?
What type of collateral do you have to put up? Where is the banks security if you invest in Enron and lose it all?
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Actually I think more people have a margin account then a cash account. No collateral at all but they will do a credit check on you. They will give you 70% loan to value on stocks over $5 and option eligible. So if you want to buy $100k worth of Rimm you only need to have $30k and the brokerage lends you $70k.
Hehe. Otherwise there is no way i could hold 700 shares of Apple.
It's too bad you can't really short sell houses in Canada.