Residual stock loans are a financial tool that allows you to leverage your stock investments for liquidity. This guide will address how these loans work, answer whether you can use stocks as collateral, and explain the impact of the stock collateral loan interest rate.
What Are Residual Stock Loans?
Residual stock loans let you use your stocks as collateral to secure a loan while keeping your investments intact. This means you can access cash without selling your stocks, benefiting from any future gains. Residual stock loans are particularly useful if you need funds but believe your stock portfolio will appreciate in value.
