b/c the collateral is the stock portfolio usually held at the same bank. The banks will give away these lines of credit with basically no paperwork, at least up to 60% of the FMV of the portfolio, again because the collateral is sitting right there where the bank can track its value day in and day out.

So if you have a large purchase to make, why would you ever sell stocks instead and pay 23.8%+ state? Makes no sense.