P
phoenix_n
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I was just thinking about the pros and cons of borrowing money to invest in the share market. ( or more precisely to 'gamble' on the increase of one or two stocks)
I guess the major cons against of such a practice would be; the risk involved, the rate of interest of the borrowed money, and capital gains. (anything else?)
Can you even get a personal loan without justifying why.
So assuming you borrowed 100euros to buy 100 shares at 1 eur each, what kind of a share increase would you need to make an increase that would be worth the increased risk ?
Came across this article.
http://www.theage.com.au/news/money...1139542439802.html?page=fullpage#contentSwap1
I guess the major cons against of such a practice would be; the risk involved, the rate of interest of the borrowed money, and capital gains. (anything else?)
Can you even get a personal loan without justifying why.
So assuming you borrowed 100euros to buy 100 shares at 1 eur each, what kind of a share increase would you need to make an increase that would be worth the increased risk ?
Came across this article.
http://www.theage.com.au/news/money...1139542439802.html?page=fullpage#contentSwap1
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