Repayment

Finance allah shmoop what are borrowers Well they're people who

need lenders And no not the bagels And yeah we

beat that one Death borrowers The bunny tio by stuff

you know like homes cars computers chain saws you know

to deal with defective computers and cars and adam or

granular level borrowers carry credit cards which borrow money or

used to borrow money from the bank who issued that

credit card to buy piercings at the mall groceries sports

equipment or rhinestone studded iphone accessories And then the borrowers

either pay off that loan or credit at the end

of the month or they get charged Big interest borrowers

are common among the wealthy he invested and the wall

street sophisticate crowd A brokerages margin account allows clients to

borrow against themselves That is given client has a hundred

grand in coca cola stock in their account Well they

can usually borrow up to about half that amount or

fifty grand against it Fifty fifty thousand is the absolute

max that they can borrow without having to sell some

of the borrowed money The moment ko stock declines Why

Because while the government doesn't want people to be too

leveraged And that's how the great depression stock market crashed

in its warnings Yes we don't go there again all

right More commonly a brokerage accounts cash would be used

for that last twelve grand needed to buy the car

usually way cheaper interest rate and deal terms When a

buyer is borrowing from herself to buy that prius rather

than borrowing money from the kindly loving generous auto dealer

the notion is that the borrower tries to quickly pay

off the margin debt on that account and go back

to normal life with no death Short stock is another

borrow example on the street If it investor wants to

make the bet that it given security will go down

in value They can borrow money from a broker and

sell that security and then pray that it declines in

value at which time the short seller will buy back

that stock and deliver it to the brokerage to unwind

their short position and pay back the money they borrowed

If the stock doesn't decline and goes the other way

while things can get ugly as the short seller not

only have to then buy back stock at higher prices

but must also continue to pay the usually very high

interest rate on the bar Oh there as well So

there are all kinds of ways to go about borrowing

but it's pretty tough to get through this world without

ever borrowing in one form or another The guy who

said neither a borrower nor a lender be yeah he 00:02:21.888 --> [endTime] does not work in high finance