Investing in stocks with a a loan

[Nomad]

Do you think investing in the stock market with a bank loan is a good idea? What are the major risks associated in investing in stock with a loan? What are the potential benefits?

 

[SHAHID987]

Every individual could have their own view, but in my view never, ever invest in stock with loan. Because there much more chances remain as you face big loss, so suppose you are facing loss and you need to pay loan too.

 

[magnus2022]

It is a very bad idea to borrow money from bank to buy stocks. Investment is a risk and can depreciate. It is advisable and reasonable to use only fund from our savings to invest. Borrowing from bank to invest is a very bad idea.

 

[Springtime]

I have never borrowed any money to invest in stocks. I find that too risky. I know there are people doing this. They are taking the chance that the value of the stock will rise quickly and they can repay the loan in no time.

 

[Fidelia]

If you are taking out a loan to invest in stocks, you have to ensure that you have something tangible that you arr doing ass a job to repay the loan before the stock yields interest.

 

[kerryjoy]

Borrowing money from a bank to buy stocks is highly risky. Investments carry inherent risks and can lead to depreciation, making it an unwise financial decision.

 

[Stardom22]

In my opinion, the investment is made appropriately on the one's savings. Loans had caused most investors to financial problems that caused the business to go bankruptcy for that matter.

 

[Augusta]

It is not a bad idea for me since it is a kind of investment which would bring more yields but try to be sure that the stock is from a very viable company

 

[King Belieal]

It is not a good thing to do. You should build your own investment capital by yourself than borrowing. Just remember that every investment is a risk and can fail.

 

[Suba]

Buying shares with borrowed money is not recommended for beginners, this investment can only be done by experts, especially in analyzing the issuer's fundamentals, when launching an IPO, and only for the short term of less than a month.

 

[Augusta]

Even as a beginner you can get lucky that you buy from a viable company and you can still get a better yield

 

[Suba]

One of the investor's mistakes is investing in stocks with loan funds, especially taking bank loans, stocks are not quick money makers. Unless you are an expert and experienced investor, you can do shorting stocks.

 

[Starmix]

I think I am not for that loan to fund my investment. It is a scratching. What if my investment flops? How could I pay my loan? It is best to save first before investing in stocks.

 

[Stardom22]

For sure the starting of any investment with loans l think it's not very appropriately. For me l wouldn't like that idea. Most people really mess up with that and become bankruptcy when fail to repay the loans

 

[Starmix]

It all depends on the investor on what to do to add his investment to apply for a loan or to wait for his savings to grow big.