Chronicle Week and Stock Loans

At Equities First Holdings collateral loans are granted to businesses and individuals based on stocks offered. The model used is a sale a repurchase system which allows stocks to be sold by the company and then bought back at a later date. Therefor no cash reserve is necessary because repurchase does not occur until the repayment of the loan. The repurchase market used in this company is Dubai Purchase Market.

For more: https://www.reuters.com/article/brief-dfm-approves-equities-first-holdin/brief-dfm-approves-equities-first-holdings-as-registered-repo-buyer-idUSFWN1S600Q

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