@dweetle: Here’s the simple version: You buy $10,000 worth of stock. Instead of selling it when you need money, you can potentially use the stock as collateral for a loan. 🏦 Stock: $10,000 💰 Loan: $5,000 📈 You still own the stock If the stock rises, you still participate in that growth while owing the bank the loan. And because you’re borrowing money rather than selling the stock, the loan generally isn’t treated as taxable income. This is one reason wealthy investors can access cash without immediately realizing capital gains. But there’s a catch: if the stock drops too much, the lender can require additional collateral or force a sale. So it’s not “free money.” It’s borrowing against an asset instead of selling it. Follow @dweetle for more. DM for credits or removal. #Finance #Investing #Money #Business #Dweetle

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Saturday 05 September 2026 11:02:44 GMT
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