How Elon got $94 Billion in FREE money #shorts

Elon Musk got $94 billion in free money. It's called stock collateralization, which really just means avoid taxes, take loans on your stocks. Musk had 175 million Tesla shares with Merrill lynch, calls up his banker and pledges shares against the money he's going to take out. So he puts up 88.3 million shares, 36% of his total stake, which gives him $94 billion. 32 billionaires in the Forbes 400 use this. Why do they do it? Number one, taxes. It's much cheaper to not pay gains tax. The second is there's no limits on the loan. If you go get a stock loan, you can pretty much do whatever you want because the banks do not request loan. Purpose number three is it's a simple process. You just have to have the asset, AKA the stocks to hold. And four, you can invest more long term. Imagine Elon Musk. He thinks Tesla's going to go to the moon. He doesn't want to sell his stock, so instead he gets what's called liquidity, AKA cash in his pocket without having to sell. If you don't understand good debt, then you won't get your 94 billion like Musk did.