1. A margin loan taken out to pay a tuition bill or buy a car, for example, is not deductible. 2. All were bought using the margin loan. 3. Brokerages, for instance, can rely on the release to send trade confirmations to clients along with required disclosure on options, margin loans, and municipal securities. 4. But the chance for an outsize profit is the main lure of the margin loan. 5. Changing the category would increase the amount of money investors will have to put up for margin loans to buy the stock. 6. Credit for a share purchase is called a margin loan. 7. Even if the stocks plummet, that client will not suffer the greatly magnified losses of an investor with the maximum margin loan. 8. For some market watchers, the best way to minimize the risk of margin loans is to avoid them altogether. 9. However, taking out a margin loan at your broker to buy a car, say, is considered consumer interest, which is not deductible. 10. If anyone starts reading this book not knowing what put options or margin loans are, he will certainly finish the book with a working knowledge. |