Margin loans - A Friend Of Mine Says They’re The Way To Go, Why?
March 11, 2008 by Josie Kay · Leave a Comment
Q. A friend of mine has a margin loan. Why would he have one?
Josie’s answer - There has been lots of bad press lately about margin loans (you may recall Eddie Groves from ABC Learning is now in deep financial trouble because of them).
Margin lending is a higher-risk strategy. Your investment, for example, the shares you bought, is the security for the margin loan and its value varies on a daily basis.
If the share market takes a nosedive you might suddenly no longer have enough security for your loan. Read more
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