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stock loan
noun
A loan structure using free-trading stock or in some cases restricted stock as collateral.
Exact(24)
"I view stock loan sort of as the Mafia," Mr. Cohodes said in his deposition.
Numerical results suggest that the current method is reliable and the stochastic interest rate leads to a higher optimal exercise price of the stock loan in comparison with that calculated from the Black Scholes model.
In 2002, the most recent year for which data is available, the government thrift plan received $2.3 million in stock loan rebates, which translated to significantly lower costs.
Last week, the government brought criminal charges against former stock loan employees at a number of brokerage firms, among them Morgan Stanley and A. G. Edwards.
Derivium's "90 Percent Stock Loan" works as follows: you put up stock worth $100,000 today as collateral and borrow $90,000.
The stock loan market is quite profitable to brokerage firms because short sales create what amounts to free cash to be invested.
Similar(36)
Stock loans are loans collateralized by stocks.
Mathematically, stock loans can be regarded as American call options with a time-dependent strike price.
Based on portfolio analysis, a partial differential equation (PDE) governing the value of stock loans is derived.
Until recently, collars and stock loans have been available to only ultrarich investors like Cuban.
This study is the first in the literature that considers the valuation of stock loans in a stochastic interest rate framework.
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