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A comment on Musk announces funding secured for Twitter buy. Parent comment

Re:Musk announces funding secured for Twitter buy by mywittyname on Thursday April 21, 2022 @04:43PM (#31114933)
It doesn't need to lose 90% of its value overnight, 30% is enough to trigger a call on margin loans.

Within the past year, Telsa stock slide from a $1209/sh peak to $766/sh in the span of about five months.

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Re:Musk announces funding secured for Twitter buy by littlestymaar on Thursday April 21, 2022 @06:33PM (#31115994)
And what? Can't he just add more securities as a collateral if it happens?
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Re:Musk announces funding secured for Twitter buy by HWR_14 on Friday April 22, 2022 @02:00AM (#31118689)
If he has it. At standard margin rates, he'd need to put up ~$140 billion in TSLA stock to cover his TWTR offer. How much can TSLA slide before he doesn't have that. Keep in mind, private companies (SpaceX, Twitter in this hypothetical) cannot be used for margin purposes.
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Re:Musk announces funding secured for Twitter buy by tekknik on Friday April 22, 2022 @08:53AM (#31121007)
Why would he have tu up up almost 4x the loan amount? He just needs to cover the loan.
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Re:Musk announces funding secured for Twitter buy by HWR_14 on Friday April 22, 2022 @09:20AM (#31121223)
When using stock as collateral for a loan, it's not uncommon to get a loan for 30% of the value of the stock. Certainly not 100%.

In this case, MS has offered him a loan for 20% of the value of his stock.

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Re:Musk announces funding secured for Twitter buy by tekknik on Monday May 02, 2022 @08:20AM (#31234173)
You can still sell the rest of the stock and cover a majority of the loan. I still fail to see why you need way more money than the loan amount to pay it off.
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