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Prime brokerage transactions: Difference between revisions
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===[[Margin loan]]=== | ===[[Margin loan]]=== | ||
In order to ''buy'' that share in the shop window, at which you’ve been gazing longingly each day as you pass on your way to and from work, you want to borrow some money. Good news: your broker — now we call it a [[Prime broker|“prime” broker]] — will ''lend'' you the wedge. But there’s a catch: ''first'', you have to pony up [[initial margin]], and if the stock drops in value, you’ll have to pony up ''more'' —and ''second'', you need to give your new shares to the [[prime broker]] so the prime broker can ''play with them''. It does this to offset its costs of lending the money to you in the first place. It will give them back to you only whjen you want to sell them. | |||
===[[Short selling]] | ===[[Short selling]]=== | ||
===Equity derivative (aka contract for difference)=== | ===[[Equity derivative]] (aka [[contract for difference]])=== | ||
{{sa}} | {{sa}} | ||
*[[Prime brokerage charging]] | *[[Prime brokerage charging]] | ||
*[[Prime brokerage]] | *[[Prime brokerage]] | ||