What is margin lending and how does it work in relation to Merrill Lynch BlueChip20?
Your obligation to repay your linked BlueChip20 Loan (including interest and fees) is secured over your BlueChip20 Account (that is, all your interest in the shares and cash held for you in BlueChip20). An investment loan of this nature is often referred to as a margin loan. More than half of Australia’s adult population now invests in the share market, a figure which is high in global terms, and increasingly margin lending is a common way through which Australian investors increase their participation in the share market. (Source: ASX.) Many Australians would list the family home as their largest asset, and often finance it through a mortgage, even though this primary investment produces no income.
