UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: Innovestors Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7258  
Subject: Borrowing money from the club Date: 6/18/2001 9:12 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
One of the members in our club has about $ 7000 in the club. He wants to borrow (and not to withdraw) about $ 5000 to cover his margin in a brokrage account. He is promising to return the money within a month. He will pay whatever margin interest we have to pay to get this money. Rather than selling some stock, we can borrow on margin from Club's borkergae account. My questions are -

1. We are allowing this to happen as an exception but is this practice common with investment clubs ?

2. How to handle it from accounting point of view ?

Any feedback on this is greatly appreciated.

Keith
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

Starting a Club
Learn how to start and run your own club, the Motley Fool way!
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement