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The Difference between Share Financing & Margin Lending​

Margin lending is mostly for top 100 major listed and traded shares​

  • Margin lending is often restricted to the purchase of additional shares.​
     

  • Margin Lending often collateralises all assets & all the other shares held.​
     

  • There are valuable stocks that should provide the owner with liquidity. ​
     

  • Idle assets are wasting assets. ​
     

Whereas Share Financing is for both the Big Cap and for approved smaller cap issues that have lower prices
 

  • Share Financing may allow smaller valuable cap stocks in brokerage accounts to be fully utilized. ​
     

  • Share financing is only secured against the shares. There are no other charges, securities, liens.​
     

  • Share financing allows the funds to be used for any purpose.​
     

  • In the event of a default, not one report goes out to any credit bureaus, government agencies nor is the public notified. There is no adverse consequence to the client’s credit.​

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