In 2011, the FINRA issued an investor alert on stock-based loan programs. In the alert, FINRA recommended investors ask several questions, including: 1) What happens to my stock once I pledge it as collateral? (FINRA states that securities should never be sold to fund the loans); 2) Does the lender have audited financials? (FINRA noted that any publicly traded major brokerage/bank that reports will need to have audited financial data available for investors); and 3) Is the institution managing the loan and accounts fully licensed and in good standing?