Your broker isn't letting you withdraw margin lending. You cant use it for consumptive purchases.
But its true, you can find a real lender for your stocks. You dont have to be rich.
Its not controversial, you have to pay it back. There are other quirks the rich have:
Already post-tax assets to pay something off
They are in control of the stock, they can issue more new shares for themselves or cause the corporation to do a stock buyback to pump their holdings more if market conditions are favorable.
Borrow more against the increased value or just sell something and pay the taxes that year.
Purchases of primary issuances are taxed differently than secondary market purchases.
But who cares when you can be a neocolonialist for a year in Puerto Rico too, 0% capital gain for new positions and prorated against old ones
> broker isn't letting you withdraw margin lending. You cant use it for consumptive purchases.
There is no rule prohibiting the withdrawal of margin cash. Or, for that matter, short selling and withdrawing that cash. As long as you're Reg T compliant, the Feds don't care. (If you're a family office, even better--you might get to be treated as an institution.)
But its true, you can find a real lender for your stocks. You dont have to be rich.
Its not controversial, you have to pay it back. There are other quirks the rich have:
Already post-tax assets to pay something off
They are in control of the stock, they can issue more new shares for themselves or cause the corporation to do a stock buyback to pump their holdings more if market conditions are favorable.
Borrow more against the increased value or just sell something and pay the taxes that year.
Purchases of primary issuances are taxed differently than secondary market purchases.
But who cares when you can be a neocolonialist for a year in Puerto Rico too, 0% capital gain for new positions and prorated against old ones