I used margin debt before too — in 1999.
This is especially true when
using margin debt.
Not exact matches
Emanuel also observed that New York Stock Exchange members»
margin debt, or the borrowed amounts
used to trade, had peaked.
Using a lot of
margin debt to finance equity leads to a rocket up, and a rocket down.
Also on the list are speculative non-dividend paying stocks and people, those who
use margin or
debt to leverage their positions, and those who advertise their willingness to purchase certain securities: again, well outside the realm of the ordinary investor trying to create a little tax - free dividend or interest income.
So if you're
using debt (
margins) to buy stocks, volatility is certainly a risk for you.
Corporations
use the ultra-low rates to refinance
debt, repurchase stock shares, cut costs and enhance profit
margins, while rarely
using the easy money to hire.
But despite this,
margin account money can be
use to do anything and everything you want, including paying
debt at a higher interest rate and including a Louis Vuitton bag or a Denis Gagnon sexy dress!
If you wish to
use debt to invest in the market, consider instead opening a
margin account with your brokerage.
There are a number of series that can be
used to normalize the long - term uptrend and to put the amount of
margin debt in context.
Margin debt can either be for the purpose of buying more securities, or «non-purpose lending,» where the proceeds of the loan are
used to buy assets outside of brokerage accounts, or goods, or services.
I see only two choices really: i) Cash Machine — to maximise revenue / ARPU, retain subscribers, increase
margins, conserve cash, and focus on
debt pay - down & dividends, or ii) Growth Machine — to pursue hell for leather growth in revenue, services & subscribers, potentially sacrificing
margin, and
using cash flow /
debt (& perhaps additional equity issuance) to fund the required capex and acquisitions.
If I get sick of having to watch the
margin debt (say I'm worried about a
margin call while I'm out of town), I can
use the HELOC to pay off some or all of the
margin debt.
For example: I have a HELOC
used for investment property expenses and a
margin debt,
used to invest in blue chip socks.
I decide to
use margin money to invest at a low interest rate despite the fact that I said previously that I was going to only
use the
margin money to pay off
debt at a higher interest rate.
In my personal financial situation,
margin is a great tool to
use to pay off
debt hold on line of credit at a higher interest rate (8.75 % in this case).
If you * insist * on buying on
margin, I'd suggest you consider a strategy I mentioned at the start on
using margin to lower trading costs and keep the
margin debt below 10 % of your portfolio value.
Proceeds will automatically be
used to pay down any
margin debt if you have any, and the balance will remain in your core account.
OP wants a
margin loan he'll
use to pay the
debt.
Investors were infatuated with the returns available in the stock market, especially by the
use of leverage through
margin debt.
While rising prices are squeezing potential
margins, Wall Street - backed investors are able to increase their returns by
using low - cost
debt to finance their purchases.