Educational guide · ASX
Australia Stock Loans: A Guide for ASX Shareholders
Short answer
A stock loan is financing secured on listed shares: the shareholder pledges ASX-listed stock and receives cash, keeping economic exposure to the shares. It can be full-recourse or non-recourse.
Frequently asked questions
How is a stock loan different from a margin loan?
A margin loan is a revolving broker facility on a diversified account with daily margin calls and tight concentration limits. A stock loan is usually a fixed-term facility on one holding, which can suit large single-stock positions that a margin account would not accept.
What decides the terms for ASX-listed shares?
Mainly the stock's liquidity (average daily traded value), its volatility, the size of the holding relative to free float, any lock-up or trading restriction, and the tenor requested. Concentrated or less liquid holdings usually receive lower advance rates.
Related Australia guides
- Australia share-backed financing
- Australia margin loans
- Australia equity-backed financing
- Australia block trades
See also
This guide is general information, not financial, legal or tax advice. It does not describe Squadron Capital's specific terms.