₦airaland Forum

topic,

In my case, I held a margin account with a stock broking firm - i.e. I borrowed from the firm and secured it with the stocks I owned (GTB, FBN, Unilever, UBN, Conerstone, Dangote sugar). The ratio was 1:1 meaning I could borrow to the limit of the value of my personal portfolio. Guess what. I borrowed about 80% of the value of my portfolio to finance the purchase of some stocks in the margin account with the hope of making some extra money.

When the bubble burst, what followed was total devastation. The stock broking firm put me under intense pressure to pay down their loan which was running at 22%p.a. I gave them instruction to sell the stocks from my margin account to liquidate the loan. Behold they could not find buyers for some of the stocks (a situation I thought would never arise). To cut a long story short, I ended up selling all the the stocks in my personal portfolio (which had also shrunk) to pay off the loan but it was not sufficient to clean up the balance. Now I owe N1.6m at 22% p.a. They visit and write me letters everyday to pay off the outstanding balance. I've told them to stay away but I know they wont.

To digress a little, I believe a new bubble has formed in the real estate market. I'm hearing that houses bought now for N30m will be worth N50m by next year. These were the kind of stories we heard about some stocks during the boom period. This has left me a little confused because I'm about to buy a house (with another loan) but I don't want to be beaten twice.

Thanks for your response. I guess it means I don't have to waste my time explaining the meaning of gambling to the goodness07 guy.

Even going by his own post he has admitted that both gambling and investment are based on risks while hoping to make positive returns.

May be we need to think through issues before attempting to offer "expert" advice.

One would wrongly believe that First bank shares kept increasing inspite of the problems other companies were facing.

The content in bold refers, it is even more than that. Some banks were actively promoting a scheme where they agree to fund up to 40% of the total amount you want to invest in shares. That 40% is given to you as loan. This is a fact

Ewe ti a ba ja sowo otun, otun nii gbe
Eyi ti a ba ja sowo osi, osi nii gbe
Bio bale bio bale ni labalaba fii wogbo
Oro ti okete ba ba ile so, ni ile ngba
bi igbi ba fa, ikarahun a telee

Toyin ooooooooooooooo, mo pe o loni o,
nitori bi a ba pe oku ni popo, alaye ni dahun
bi pepeye ba mi okuta, omi nii fii su
mo pe Toyin loni, ki o maa fall in love pelu mi,
ife eyele ni ko maa ni si mi o
bi o ba ri mi, ki o ma le je
bi o ba ri mi, ki o ma le mu
Ko ri be, Ko si se be.

who knew we had babalawos in our midst

Guys, I just heard on Breaksfast News that Drogba's been dropped for the next game after stating categorically that he is unhappy and wants to leave. What do you say?

@tkb417
This one wey you change siggy again i hope say you and Madam no fight sha?I been get your messages good looking out man!

Fergie is trying to reduce Carlos's value in the transfer market that man is a crook a smart one at that

kurukerekurukere ni aja se wo igbo lo

Patrice Evra out for three weeks

Rio Ferdinand missing for another week

[b]Maradona tells Tevez to join Inter[/[/b]quote]
madman. why not Verona?

Ole ajibole
Ole ajibole
Oloju ewure
OLE

oro ti oko ba obo so lobo ma gbo
aki ngbo iku oko, aki ngbo iku obo
enikan ki ngbo iku sperm ni ibi ti o ti nsare lo fun fertilization.
loyun bade!!!!!!

oniranu
so that is d work u want to do?

What is happening here? Incantations? Please Babalawos in the house help me call on sango to come and deal with all our rulers that are giving us stress in naija. Am dead serious oo.

Ow
Gotta go tell him
Was with him at Honolulu, we just moved to Guatanamo Bay this morning
You gotta pay me some quids to put you through to him
Else i will break ya heart

With this your latest reply it is obvious we are not on the same page. You seem not to understand the core issue I raised, sorry for expecting too much from you, my mistake.

Ma fu e leti,
ori o da,
omo buruku

@nateevs
why waste ur breath on them. No Ronaldo, no Manchester United.

Based on this poster's comments about his losses I wonder why he qualifies to advice anyone on stocks.

@Chac,

You can't compare ManU's financial state to having a mortgage. . . In a stable economy having a mortgage is like securing a loan to finance an asset . . that will penultimately increase in value. .  it makes sense to any bank to fund that so long as they can prove your capacity to finance the mortgage repayments. .

Conversely, ManU's borrowing to buy perishable assets . . in the finance of wage bills and transfer. . they very little fixed value whatsoever to the club. . like no one will buy Berbatov off you plus wages, for £30m. . that's debt.

The Glaziers won't cry no matter what, because they do not have a single penny in it. . . They don't lose either way. [b]ManU's debts are spiraling out of contro[/b]l.

My question is will the banks stop borrowing ManU money?