Investors often assume that a stock loan is the same as a margin loan, with the primary difference being that margin loans are offered by brokers and stock loans are extended by independent lenders. In reality, the differences between these two types of loans are significant, and in almost every case a stock loan offers investors better terms with fewer risks and limitations.
The advantages of stock loans over margin loans are apparent when the key features of both loans are compared and contrasted with each other:
Even with all of their advantages over margin loans, stock loans are a product that only sophisticated investors should consider when they are seeking sources of liquidity. The stock loan industry is subject to the same laws, rules, and regulations that generally apply to the domestic and international securities markets, but it is a lightly-regulated sector of those markets. An investor that is seeking a stock loan should do thorough due diligence and analysis before completing the transaction, including reviewing all stock loan documents and materials with the investor’s legal, tax, and accounting advisors, and verifying the investor’s understanding of the benefits and risks that a stock loan provides.
Stock loan investors should also stay closely attuned to changes in the market price of the collateral that the pledge as securities for loans. Lenders that originate stock loans will not make the same kind of margin calls that brokers will make for margin loans. Nonetheless, the loan agreement that is part of a stock loan transaction might allow the lender to terminate the loan and to take full legal and equitable ownership of the collateral if the per-share price of the pledged stock falls below certain floor values that are defined in the loan agreement.
Alternately, if the per-share price of the collateral increases during the term of the loan, the investor may have an opportunity to modify a stock loan to increase the loan’s principal balance and to draw more liquidity in relation to the stock’s appreciated value. Stock loan investors also retain the right and opportunity, upon repayment of a stock loan’s principal, to receive the full value of stock or cash dividends that an issuer declares on the collateral shares that an investor pledges for a loan.
The Private Bank offers stock loans that are collateralized by securities that are traded on most international public exchanges. Please contact one of our stock loan agents or call the Private Bank directly to speak with a specialist who will show you how to unlock the liquidity of your publicly-traded stock assets with a negotiated stock loan.
Please read and review the following disclaimer and all other information before you proceed to any other part of this website. When you have completed your review, and you are confident that you understand the entire substance of this disclaimer and information, please click on the box labeled “I Accept” to signify your agreement to the terms and conditions that govern your use of this website and the information included on it. If you do not agree to these terms or conditions or you are not willing to click the designated box, you must exit without proceeding further.
TERMS AND CONDITIONS OF YOUR ACCESS TO AND USE OF THIS WEBSITE: Astor Asset Management, LLC (the “Firm”) is a wholly owned St Kitts & Nevis limited liability company and maintains registrations through its stand-alone affiliates in Anguilla, Bahamas and Canada, (the “Company”) catering to Ultra High Net Worth (“UHNW”) clientele. The Firm and the Company have published information on this website (www.astorassetgroup.com) that may be accessed and used only by persons and entities that qualify as prospective or actual clients of the Firm and its sophisticated financial products and services.
Certain portions of this website refer or include links to products and services offered by third parties that may or may hold licenses from various jurisdictions. The Firm does not hold or maintain its own global financial licenses, and refers to third party services for informational and educational purposes only and not by way of endorsement or recommendation. But the Firm through its stand-alone affiliate Astor Capital Fund Ltd does maintain a Money Service Business license in Canada, (“MSB”) having an MSB Registration Number M21136919 under license from Financial Transactions and Reports Analysis Center of Canada (“FINTRAC”). The main office for MSB is 1730 St. Laurent Blvd, Ottawa, Ontario, Canada K1G5L1 and engages in authorized activities to its international (non-Canadian) clientele.
You have the sole and absolute responsibility and liability for your decisions that may be based on information you receive or derive from those third-party websites. Any person who accesses this website is solely responsible and liable for compliance with the applicable laws, rules, and regulations of the jurisdiction in which such person resides, or in which such person is currently located. The Firm shall have no liability for any person’s access to this website that originates from a jurisdiction in which such access may be prohibited.
Astor Asset Management operates strictly in accordance with the United States Securities Act of 1933 and the United States Securities and Exchange Act of 1934 (both, as amended), including all of the rules and regulations promulgated under both Acts. For full SEC registration and reporting details, including, without limitation, the Company’s S-1, Prospectus, Current Reports, 8-K, 10-K, and Annual Reports, please refer to the EDGAR Company Search Results for Astor Asset Management, LLC at www.sec.gov. Astor Asset Management, LLC files reports under Central Index Key (CIK) #0001488446. All of the Company’s reports reflect a fiscal year that ends on December 31.
The financial products and services that the Firm offers are not available in the United States of America and Canada or to citizens of the United States of America or Canada regardless of their residence. The Firm takes no position with respect to other jurisdictions, and any person who accesses this website is solely responsible for making such determination. No person, regardless of where such person is located, may rely or act upon any information contained in this website.
The Firm’s products and services are not suitable for all investors and the Firm offers no advice as to whether any specific product or service that it offers may be suitable for any person or entity, and such person or entity is solely responsible for seeking professional and independent financial, legal, and tax advice before considering an investment with or any participation in any of the Firm’s products or services.
By entering into a referral agreement or contract with the Firm you expressly give the Firm the right to contact you via electronic mail and courier with newsletters, promotions, events and marketing materials.
The Firm has not and does not solicit any person to utilize this website or to access any information in it. Every person that accesses this website is gaining such access through his or her own personal choice and option, and without encouragement from the Firm or any affiliate of the Firm.
Nothing in this website is, and in no part shall be, construed as a financial promotion or a solicitation to procure any of the Firm’s products or services. The Firm has taken great care not to promote any financial products or services on this website, and it is relying on the exemptions and exclusions that are available in different jurisdictions with respect to such disclaimers. The Firm has a strict policy of not soliciting the participation in, or offering financial products services to any jurisdiction in which those products or services are not allowed or authorized. You must contact the Firm immediately if you are the recipient of any solicitation or offer to procure products or services from the Firm.
The Firm makes no warranties, guarantees, or representations with respect to the accuracy or completeness of any information included in this website, or as to whether such information is error-free.
Your decision with respect to any of the Firm’s services or products is your sole and exclusive responsibility to make. The Firm will rebuff any requests for advice that you might make with respect to the products and services described in this website. You are acting on your own volition and initiative in taking any and every action in response to information that you derive from this website. Further, you bear sole responsibility and liability for compliance with all legal and regulatory requirements that may be applicable in the residential or domiciliary jurisdiction.The Firm is not offering or soliciting the sale of any securities or any other financial products or services through this website. The Firm takes no position as to local laws, regulations, rules or restrictions that may be applicable to your use of this website or the information in it. The Firm specifically warns all persons who access this website that the information in it is not to be utilized or distributed in the United States of America or Canada.
You are not authorized to copy, reproduce, or distribute any information in this website and you may not link into this website from any other website. The Firm not a registered investment advisor and is not a securities broker/dealer. The Firm conducts business only in those jurisdictions in which it has an applicable exemption or exclusion from registration requirements.
The Firm and its affiliates disclaim all responsibility for any access to this website that is contrary to applicable laws and restrictions. The Firm expressly disclaims all liability and responsibility for actions by its third-party contractor agents who act outside of the scope of their authority.
By your accessing of this website, the Firm assumes that you have read and reviewed these terms and conditions carefully and thoroughly, and that if you click the box labeled “I accept”, you are doing so with full and complete knowledge of these terms and conditions and as a confirmation that your local laws, rules, regulations, and restrictions allow you to access this website. Further, you are accessing this website without having been solicited by the Firm to gain such access, and you have verified that accessing this website does not violate the laws of your jurisdiction or domicile.
Your access of this website is also your representation and warranty, which the Firm may rely upon, that you are not located in or a citizen of the United States of America or Canada. The Firm has enacted measures to block access to this website from IP addresses that are located in the United States of America and Canada, and your use of a virtual private network, a TOR browser, or such other means that are intended to disguise your location is a violation of your right and opportunity to access this website. The Firm reserves full right and authority to prosecute such violations of these terms and conditions. Further, you are representing that you are acting on your own behalf and not on behalf of any third parties, including any third parties located in the United States of America or Canada.
Your access of this website is also your representation and warranty, which the Firm may rely upon, that you understand that the Firm is not, nor does not hold itself out to be, a securities broker-dealer, investment advisor, or underwriter licensed or registered with any securities regulatory authority. Astor does not engage in or promote products, activities, or services in jurisdictions where licensure and registration is required. Astor outsources to third-parties any clients, services, or activities as deemed necessary to comply with state, federal, and regulatory authority law. All information on this website is presented “as is”, and the Firm takes nor position on its correctness or completeness.
Astor Asset Management and its Astor subsidiaries are corporations organized and existing pursuant to the laws of the Anguilla, Bahamas, Canada and Federation of St Kitts & Nevis. The Firm conducts business out of these jurisdictions, and only with accredited UHNW investors that need sophisticated financial products. Our typical client is a founder and chairman of a publicly traded company, prominent celebrities and politicians.