Educational guide · TWSE/TPEx
Taiwan Stock Loans: A Guide for TWSE/TPEx Shareholders
Short answer
A stock loan is financing secured on listed shares: the shareholder pledges TWSE/TPEx-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 TWSE/TPEx-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 Taiwan guides
See also
This guide is general information, not financial, legal or tax advice. It does not describe Squadron Capital's specific terms.