3 ms·
Yes. But banks won't loan 100% on equities. This scenario would just be basically impossible.
by odonnellryan 5y ago
Yes. But banks won't loan 100% on equities.
This scenario would just be basically impossible.
- gunshai 5y agoI am not sure you understand my question / hypothetical. A bank is not the only form of a lender first off, second the reason there isn't a 100% loan on an equity is that it's understood that the value of the underlying collateral can fluctuate. These are called over collateralized loans.