Investment Term For The Day - Securities-Based Lending

04/11/2022 1 min
Investment Term For The Day - Securities-Based Lending

Listen "Investment Term For The Day - Securities-Based Lending"

Episode Synopsis

The term securities-based lending refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital that can be used for almost any purpose such as buying real estate, purchasing property like jewelry or a sports car, or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan. Generally offered through large financial institutions and private banks, securities-based lending is mostly available to people who have a significant degree of wealth and capital. People tend to seek out securities-based loans if they want to make a large business acquisition or if they want to execute large transactions like real estate purchases. Such loans may also be used to cover tax payments, vacations, or luxury goods.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.