What happens if the stock price falls considerably, or the company even goes bankrupt? - He decides it's better to lose the underlying collateral (worth less, or possibly nothing). His loan is "free" and no taxes are paid.
What happens if the stock price rises considerably, let's say doubles or quadruples? He can sell a fraction of the stocks to pay for the loans. He pays taxes, but can keep a bulk of his shares and even take out a new loan on that.
Either way he's never going to lose any money. If the stock price rises taxes will be paid eventually, but it will delayed by many years. If the stock price falls taxes will be avoided. But IT stock has never gone down, so we don't need to worry about that... right?
I was using Yahoo before it was cool.
I was using Yahoo before it was cool to do things before they were cool.
Fixed that for the both of you.
All rules seem to be optional, the traffic school is a joke, with a short written test (identify 6 traffic signs to pass), and an even shorter drive. Only the golden rule applies - Don't hit anyone else, and they'll try not to hit you.
90% of the effort is spent on watching for other drivers that do something out of the ordinary...
Good enough that when the job went sour (mainly for asinine projects and total lack of communication from coworkers) I could afford to stop working for the last year of my wife's contract and just be a stay-at-home husband - thanks to the visa rules.
The steady state of disks is full. -- Ken Thompson