It’s Not Always What You Think
Buy, sell or hold. Oddly enough, these recommendations hardly ever influence the viability of a stock loan… not a True Loan anyway. This is why so often TLP clients are baffled by which companies receive more favorable financing terms vs. the negative market perception of any particular company and/or its sector. Most stock loans, especially the “non-recourse” or the so called “Rule 144 Restricted Stock Loan”, require the transfer of ownership. This process creates a host of problems for shareholders while tainting the legitimacy of the loan; ultimately, skewing the understanding of what bona fide non-recourse type stock loan terms…