About Maine Streets Securities

Whois Maine Streets Securities?

MaineStreets Securities collateralizedstock loans give investors another mechanism to realizenear-immediate liquidity from the unrestricted, publicly-tradedstocks that are in their portfolios. In a typical stock loan, theinvestor will borrow a sum of cash that is a percentage of the valueof the collateral stock that the investor will pledge to secure theloan. Most stock lenders will lend from 20% to 70% of the value ofthe stock. The final loan-to-value that a lender will offer will be afunction of the fundamental financial strength of the issuer of thestock and the average daily trading volume of that particular stock.

Mostcollateralized stock loans are for terms of between oneand five years.The borrower pays simple interest during the loan term and repays theloan principal balance on the loan maturity date. Alternatively, theborrower can elect to retain the full principal balance, in whichevent the lender assumes full possession and ownership of thecollateral stock and the transaction terminates with no furtherliability on the part of either party.

Aswith all transactions involving publicly-traded stock, a borrowershould always consult his or her financial, legal, tax, andaccounting advisors to understand the full implications of a stockloan and a potential default before engaging in a collateralizedstock loan transaction. A stock loan lender will facilitate atransaction but will not make or provide any warranties orrepresentations on how the transaction will affect the borrower’sfinancial profile.