Stock Based Loan Programs: What Investors Need to Know

Investors who need cash — or who want to tap the value of their portfolios without selling their investments — might be tempted to apply for a "stock-based loan," pledging fully paid securities as collateral for the loan.

However, stock-based loan programs can be risky, especially when they involve "non-recourse" loans from unregistered, unregulated, third-party lenders.

The Financial Industry Regulatory Authority recently issued an alert regarding Stock Based Loan programs providing investors with information they need to know.

View the FINRA alert