What is meant by loan stock?
What is meant by loan stock? Loan stock is a form of debt which shares multiple features with risk investment. It's stock issued by your business as a collateral against a loan. Just like other loans, it earns interest and grants control of the shares to the lender until the loan is paid off. What is buying stocks with loans called? Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally....