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I assume they borrow against the after-tax value of the stock, because it will be taxed before being paid back(?) I don't know if that is significant, but I fig
by Stupulous 5y ago
I assume they borrow against the after-tax value of the stock, because it will be taxed before being paid back(?) I don't know if that is significant, but I figure it's worth noting.
- zeusk 5y agoNo that’s not how it works. Infact, you can get a margin loan at 0.75% interest from ibkr if you hold more than 50k usd of stock for half of its value. Of course, if that value drops you’ll get margin called for more collateral
- Stupulous 5y agoHalf of its value is less than after-tax value, which is at least the initial investment + 63% of the gains.
- zeusk 5y agoMaybe I didn’t phrase it right for you, Unaccredited investors (us, commoners) have access to margin loans for up to 50% value of account. Accredited investors have access to portfolio margin which can be up to 90% of mark to market value. That’s nothing to say of any custom financial instruments that banks might come up with to save bezos any taxes. Think swaps.