Loan stock

A loan that is backed by a preferred or a common stock. This type of loan carries a significant amount of risk. When the value of the stocks used as collateral to a loan drops in value, the borrower will be faced to cover the remainder of the value. These scenarios happened during the early years of the 1900s with great consequences.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use