5 Advantages to Using Margin Loans for Short Term Financing

5 Advantages to Using Margin Loans for Short Term Financing

Using margin debt or borrowing against brokerage accounts is back in vogue in 2013.  According to the NYSE, investors borrowed $384.4 billion against their investments in April 2013 eclipsing the previous all time high set in June 2007.  

When you borrow on margin, you are pledging securities like stocks and bonds in your brokerage account to obtain loans from the brokerage firm. Typically, these borrowed funds can be used at the discretion of the borrower.

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