Margin Account Borrowing
Investors traditionally have used their margin accounts to purchase additional securities, but margin accounts can be used in a number of ways. City Securities' margin borrowing program can provide a ready source of funds to meet your short-term credit needs. With an approved margin application, you can keep your assets working while you enjoy added benefits. For example, borrowing against the value of your securities at very favorable loan rates to help with a college education can be a viable alternative to conventional financing.
There are some risks, however, especially if the market value of the securities you pledge as collateral declines. If the market value falls below the required minimum, City Securities will need additional collateral or you will need to liquidate some or all of your account. One of our professional City Securities Financial Advisor can explain all the details of margin borrowing, as well as the competitive interest rates charged for this type of account.