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chapter 6

Liquidity Strategies

Many clients with control or restricted stock may not want — or be allowed — to readily sell their securities. But that doesn’t mean these assets need to stay idle.

In fact, a loan secured your eligible securities may put these assets to work for you — by financing a particular purchase, generating cash flow for taxes and other obligations, or raising capital to pursue investment opportunities. Whatever your needs are, your Morgan Stanley Financial Advisor can discuss potential strategies that focus on getting more of your wealth working for you. There are risks associated with using your assets as collateral for a securities based credit facility, including possible margin calls on short-term notice.

Loans Secured by Eligible Restricted & Control Stock

Margin Loans
A traditional brokerage loan enabling the purchase of additional securities to diversify your investment portfolio — an effective strategy to potentially expedite ownership requirements. Offered by Morgan Stanley Smith Barney LLC.

Tailored Lending
Uses different assets and asset classes as collateral based on your unique needs. Offered by Morgan Stanley Private Bank, National Association.

Unlock the Value in Your Portfolio Through a Strategic Approach that Addresses Both Sides of Your Balance Sheet


  • Bonds / Stocks
  • Short-Term Investments
  • Cash or Cash Equivalents
  • Concentrated / Restricted Positions
  • Business Ownership
  • Real Estate

Liquidity Needs

  • Business Expansion and / or Working Capital
  • Commercial Real Estate Investment
  • Tax Obligations
  • Short-Term / Long-Term Obligations
  • Unplanned Expenses

Potential Solutions

  • Loans Secured by Eligible Securities
  • Commercial Lending

Your Financial Advisor can work with a Morgan Stanley Private Banker* to help address your cash f low needs while navigating the regulatory requirements and risk associated with maintaining restricted stock positions.

Unlock the value of your restricted portfolio and gain quick access to funds which may enable you to:

  • Explore small business opportunities
  • A margin loan may be used to purchase additional eligible securities for diversification
  • Achieve ownership requirements
  • Purchase luxury items
  • Pay tax obligations
  • Fund higher education
  • Finance a bridge loan
  • Meet general liquidity needs
  • Launch entrepreneurial opportunities

* Private Bankers are employees of Morgan Stanley Private Bank, National Association, member FDIC.

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