Is lending company shares to shortsellers against most terms of employment?

Jan 7, 2019 1 Comment

I know we're not allowed to sell stock short or otherwise place trades against stock, but are we allowed to lend our shares to short sellers? Fidelity has a program like this, they'll pay you a small percent return if you make shares in your account available for their securities lending program.


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TOP 1 Comment
  • Varian Medical / Product

    Varian Medical Product

    If fidelity manages your company stock (employee stock purchase program or otherwise) then it should be fine. The company would have put it in the contract with fidelity if it were not allowed.

    If they don’t manage and you’ve just moved shares there, then I have no idea how the company would know, but I suppose to be on the safe side check your employment agreement or employee handbook. If there’s no text against it you should be in the clear.

    This is such a minor and random thing that I can’t see it ever coming up unless you have a CEO like musk who hates short sellers with a vengeance AND simultaneously the company is looking for reasons to terminate you.
    Jan 7, 2019 0


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