Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a pre-determined conversion rate, as with an irredeemable convertible unsecured loan stock(ICULS).
This type of financing is also known as "portfolio loan stock financing".
SANG-Jero...not really understand..The common stock refer to the stock we are holding..so Pantech use those common stock to get a loan and as a return reward a fixed interest rate to the shareholder? Is this 3.5% interest rate pay to us?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
BBB79
2,689 posts
Posted by BBB79 > 2013-11-13 09:55 | Report Abuse
1.0, come come, i buy some more...