Freedom Holding Corp (FRHC)

[nsomniyak]

I think you are caught up in the semantics. Most brokers will not LOAN you money (margin) using stocks under $3 or $5 as collateral (you can't borrow against those stock positions). However, if you hold marginable securities in the same account, you can borrow against THOSE and used the money borrowed to buy penny stocks in that account.

For instance, for instance, if I held 100 shares of AAPL (worth $15,000 or so at today's prices), and no cash in the account, I can use the margin buying power generated by (and secured by) my holding in APPL to buy BMBM.