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by grantwu
619 days ago
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> In exchange for such favorable terms (i.e., small carrying cost, matures on death), the bank will receive a share of the collateral’s appreciation (essentially amounting to “stock appreciation rights"), and this obligation will be settled upon the borrower’s death. It's a loan in name only. Regarding Bezos's selling of stocks - perhaps he has offsetting capital gains. See https://old.reddit.com/r/BuyBorrowDieExplained/comments/1f26... |
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