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0 pointsStupulous4y ago0 comments

I assume they borrow against the after-tax value of the stock, because it will be taxed before being paid back(?) I don't know if that is significant, but I figure it's worth noting.

0 comments

zeusk4y ago

No that’s not how it works. Infact, you can get a margin loan at 0.75% interest from ibkr if you hold more than 50k usd of stock for half of its value.

Of course, if that value drops you’ll get margin called for more collateral

StupulousOP4y ago

Half of its value is less than after-tax value, which is at least the initial investment + 63% of the gains.

zeusk4y ago

Maybe I didn’t phrase it right for you,

Unaccredited investors (us, commoners) have access to margin loans for up to 50% value of account.

Accredited investors have access to portfolio margin which can be up to 90% of mark to market value.

That’s nothing to say of any custom financial instruments that banks might come up with to save bezos any taxes. Think swaps.

j / k navigate · click thread line to collapse

0 comments

zeusk4y ago

No that’s not how it works. Infact, you can get a margin loan at 0.75% interest from ibkr if you hold more than 50k usd of stock for half of its value.

Of course, if that value drops you’ll get margin called for more collateral

StupulousOP4y ago

Half of its value is less than after-tax value, which is at least the initial investment + 63% of the gains.

zeusk4y ago

Maybe I didn’t phrase it right for you,

Unaccredited investors (us, commoners) have access to margin loans for up to 50% value of account.

Accredited investors have access to portfolio margin which can be up to 90% of mark to market value.

That’s nothing to say of any custom financial instruments that banks might come up with to save bezos any taxes. Think swaps.

j / k navigate · click thread line to collapse