I hold some stocks which my broker wants to borrow from me in exchange of a return interest rate. Is this a good idea to lend it out? Usually when this happens means that there is a demand for shorting the stock which they can make money out of that’s why they are offering this. My questions is if this is a good idea or it is better to just sell off the stock ? TC 0
Run the fuck away from that broker, find one who works for you instead of tries to take advantage of you.
Pretty common for large brokers (say Schwab) to borrow shares from accounts to meet the demand (typically short sellers). If you are long on the stock and not planning to sell it, you can earn income on it by lending it to the broker.
I just did this with cava on fidelity
How much are they offering? Typically securities lending pays peanuts. If the rate is juicy take it but know it won’t last. And I’m guessing they won’t offer it on your whole portfolio just a few names in demand by the shorts. If you really want to play the extra yield game go with a new player like Premca Extra they offer 2%/year on all positions on top of however they do. Or use the Robinhood promo and get 1% bonus over 2 years.
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What do you think is wrong with a kid who got rejected by 9 colleges?
How does that impact your ability to sell?
I don’t think so