If an investor borrows 654.38 million yuan from a bank and then enters the stock market for trading, it is considered illegal. Generally speaking, when individuals apply for loans, they need to submit written proof of the purpose of the loans. The purpose of the loan must comply with the provisions of relevant national laws, regulations and policies, and shall not be used for illegal channels such as gambling and areas prohibited by the state regulatory authorities, such as stocks, bonds and other investments. It is generally not illegal for investors to borrow 654.38 million yuan from private lending companies or 654.38 million yuan from securities companies for stock trading. However, investors who borrow 654.38 million shares in this way need to pay a higher cost, that is, loan interest. Once investors make mistakes in forecasting individual stocks and suffer huge losses, their capital chain will break and they cannot borrow money. Why can't loans be traded in stocks? 1. Legally speaking, loan funds must comply with relevant national laws, regulations and policies, and it is clearly stipulated that they cannot be used for financial investment, such as stock trading, futures speculation, gold speculation and so on. Analyzing this problem from the legal point of view, the real reason for prohibiting loan stock trading is that the state protects the interests of financial institutions and individuals. After all, financial investment is a high-risk investment, which is the real reason why the state does not allow loans for stock trading. 2. Financial institutions Financial institutions lend money to individuals in order to solve the shortage of personal funds and help those who are short of personal funds tide over the difficulties, rather than lending money to invest in financial markets. From the perspective of financial institutions, the prohibition of stock trading is to protect the interests of financial institutions. In case the lender loses money in stock trading, the lender will not repay the loan, which will cause bad debts to financial institutions. In order to avoid this tragedy, financial institutions must limit the use of loan funds. 3. Personally, the stock market is a high-risk and high-yield investment market, but in the stock market, 95% of individual investors are losing money, and their ability to trade stocks is very weak. Thirdly, the stock market risk is huge, the stock market risk always exists, and the risk is unpredictable. If individuals borrow again, it will increase the leverage and further increase the risk of individual stock trading. Therefore, for the rational investment of every stockholder, don't take stock trading as a bet, and at the same time, in order to protect personal interests, it is best to ban loan stock trading.

Second, is it illegal to borrow stocks?

It is not illegal to borrow money for stock trading. "Stock market" means that investors borrow money from others or brokers to operate stocks, and individuals bear the profits and losses, usually in the form of margin. There are two main ways to pay market loans to others or brokers, one is brokerage financing, and the other is private borrowing money from securities accounts to buy stocks.

Utility advantage

Compared with brokerage financing.

1. The standard threshold of non-negotiable business is high, requiring investors to have minimum capital restrictions, and large retail investors are excluded; Stock market lending can make it easy for retail investors to raise more funds for stock investment.

2. The leverage ratio is high. The effectiveness of margin financing and securities lending lies in the amplification of leverage ratio. At present, the ratio of margin financing and securities lending of brokers is that the stock value can only be converted into 60%, that is, the stock of 1 10,000 yuan can only be financed for stock trading, and the leverage ratio is twice; The financing ratio of private stock market loans can reach 3~9 times, and all the funds are in a securities account, which is convenient to operate.

3. There is no restriction on the underlying stock. At present, the underlying securities selected by brokers are limited to the stocks with the same scope as the constituent stocks of Shenzhen Stock Exchange, and * * * 90 stocks have been selected as the underlying stocks for margin financing and securities lending; As long as there are no ups and downs in private stock market lending, there is a lot of room for stock operation.

4. The transaction rate is low. At present, the financial stability of securities firms is 2.8 ‰; The transaction commission rate of private market loans is usually 1.5‰, and the financing amount can vary greatly. For investors who are used to short-term, a one-month unilateral transaction of 10 will generate a cost difference of 1.3%, so 0.8% is not considered.

5. Flexible lending time. At present, the shortest financing period for securities firms is 3 months and the longest is 6 months. Folk month, which few companies do, can be a year or even longer at the longest.

6. The liquidation mechanism is flexible. When the line is relatively high, 1.25 times the loan amount, the position will be closed and the computer system will automatically sell it; Lending in the private equity market can only be closed if it reaches 1. 1 times of the lending amount. If the deposit cannot be replenished, the matching funds can be retained according to 9 times of the remaining deposit through negotiation, and the remaining funds can be transferred out of the account.

Extended data operation flow

Stock market lending requires investors to have a certain amount of deposits. The current method is generally triple financing, that is, to operate the stock market to raise 300,000 yuan, there must be 65,438+million deposits, of which 400,000 yuan can be used for * *.

Lenders and borrowers need to sign a loan agreement, which stipulates the loan term, interest rate and settlement line. The securities account must be a securities account opened by the lender (q, whining like dad's dad)

Generally, stock market loans are made on an annual or quarterly basis, and some powerful companies also try to make monthly or even daily loans (standard investments also include monthly and daily loans).

At present, private stock market lending is still in the primary stage, and the relatively mature areas of financial development are not large. In cities such as Beijing, Shanghai and Shenzhen, private equity companies mostly raise funds. In the face of ordinary investors, Wuhan Investment Company, a subsidiary of stock market celebrity Tan (stock hero and stock thinker), has the best reputation and is guaranteed by celebrity integrity.