Securities lending

Lending out shares you own in return for interest

In detail

You lend the shares to your broker and are paid interest for them. The price risk stays with you, but because the registration moves you may lose voting rights and similar entitlements. Short sellers are borrowing exactly these shares to sell.

Example

Lending $1 million of stock for a year at 0.5% pays $5,000.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.