Shelly Bay Capital LLC

Customized Non-Recourse Stock Loan Programs for Sophisticated Investors

Office: 646.281.1221

Fax: 516.627.5106

76 Plandome Court, Manhasset NY, 11030

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Stock Loans vs Stock Sale vs Margin Loans

There are distinct benefits to our stock lending products as they compare with outright stock sales and margin loans and we’d like to outline the benefits and clarify any confusion among these choices.

Stock Loans

• Not taxable event
• Non-Recourse-walk away if stock value drops below LTV value with no liability
• Up to 80% LTV’s
• No margin calls-protection against stock volatility
• Loans flexibility-almost any stocks at any price point including penny stocks, restricted stocks and options
• Benefit from stock growth during loan term-upside potential
• Low fixed rate loan
• Privacy - no reporting in most cases, unless restricted shares subject to SEC regulations
• Flexible unlimited proceed usage-except margin securities
• Large loan amounts accepted
• Quick turnaround in funding process
• Dividends credited towards repayment

Margin Loans

• Non taxable but full recourse loans
• Subject to margin call if stock price falls-subject to stock volatility
• 50% LTV maximum-government regulated
• Higher variable interest rates in most cases
• Highly regulated use of proceeds
• Accessibility of funds thru “cash out” can be difficult

Stock Sale

• Taxable event
• No future growth in stock available
• SEC reported in case of restricted stock
• Public knowledge of sales in some cases with officers and major stockholders

In the final analysis, Non-Recourse Stock Loans are the superior option offering no immediate tax liability and no personal liability if the stock loses value and the borrower chooses to exercise the non-recourse provision of the loan.  In addition, Non-Recourse Stock Loans are underwritten against a great variety of stocks, at higher LTV percentages, with lower fixed interest rates and provide upside potential and downside protection against stock volatility.

Stock Lending-Stock lending has significant advantages over margin loans or stock sales.   Avoid margin calls or capital gains taxes.  Let our stock lending programs show you how to save money and protect your wealth.  Stock Volatility-In today’s marketplace, stock volatility is a major concern.  You need to protect your investments from dramatic market fluctuations.   Stock loans provide a hedge against stock volatility while maintaining you potential of stock appreciation.  Low Fixed Rate Loan-A low fixed rate loan are hard to come by these days.  The credit markets have become much more demanding in their underwriting requirements.  Stock loans have become a very viable source for a low fixed rate loan.

Stock Lending-Stock lending has significant advantages over margin loans or stock sales. Avoid margin calls or capital gains taxes. Let our stock lending programs show you how to save money and protect your wealth. Stock Volatility-In today’s marketplace, stock volatility is a major concern. You need to protect your investments from dramatic market fluctuations. Stock loans provide a hedge against stock volatility while maintaining you potential of stock appreciation. Low Fixed Rate Loan-A low fixed rate loan are hard to come by these days. The credit markets have become much more demanding in their underwriting requirements. Stock loans have become a very viable source for a low fixed rate loan.