Do stockbrokers ever lend money?

Answer 1

It is illegal for a stockbroker to lend money; however, his or her brokerage firm may allow clients to trade "on margin" at a particular rate of interest. Buying on margin is simply a brokerage firm lending you money; be advised that this is not done lightly, and you must have securities as collateral in your account. If you fail to meet a margin call (that is, your investment is down in value and requires more money on your part to meet the call), the firm can liquidate whatever stocks it chooses to cover the call. Every margin account has everything detailed in writing... be sure to read carefully... it's pretty much all fine print.

Answer 2

Of course! It's called an asset management account. Generally, it will allow you to buy on margin up to about 60 % of your total assets.
Make sure you understand and avoid the margin call !!!

Answer 3

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Answer 4

U can buy stocks on margin, in a sence you borrow money with existing stock as collateral. Beware of a margin call..if it ever happens you'll know it

Answer 5

It called buying on Margin.

Answer 6

Yes,it would be called a margin account.

Answer 7

yes they do up to 50 percent of what you have in your account-it is caused margin - be careful you can loose moey twice as fast if you are not careful

Answer 8

no they are not in the lending business. they are in the business of using other people's money.

Answer 9

margin

Answer 10

no