Re:Musk announces funding secured for Twitter buy
by sokoloff on Thursday April 21, 2022 @10:59AM
(#31110294)
What you describe sounds pretty much the same as “if I start with a paid off house and take out a mortgage on it…”
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Re:Musk announces funding secured for Twitter buy
by hannasanarion on Thursday April 21, 2022 @11:59AM
(#31111216)
One big difference is that you are constantly paying property taxes on the house, levied as a proportion of its total value, making the mere ownership of it a financial burden. Stock ownership comes with no such burden.
Another is that, should the need arise, stock can be sold at the drop of a hat. It is liquid and fungible so a stock-collateralized loan is seen by banks to be a very safe investment. Houses are not.