Establishing Stock Loan Values

 
When determing the value of a stock loan, not only does the price of the stock matter, but also it’s performance. There are a couple of different things taken into consideration to determine the performance of a certain stock. Using websites such as Yahoo Finance, NASDAQ, Money Central, etc., Triangle’s research department looks at the stock’s average daily volume, price, and the number of shares available. Then, the volatility is determined by using a detailed matrix which calculates the difference between the highs and lows of a stock over a given period of time creating a target loan-to-value range. Our loan committee then meets to review the findings and determine if that target range is adequate and if the loan given should be at the higher or lower end of the spectrum.

Most loans are determined based on the borrower’s credit history. But, that is not the case with our stock loans. We do not provide stock loans based on the credit history of the borrower. The value of the loan is determined solely on the above mentioned items.