RH Stock Lending
Blog reads -- There is a risk that Robinhood Securities could default on its obligations to you under the Stock Lending Program and fail to return the securities it has borrowed. If Robinhood Securities defaults and is unable to return loaned securities, you will not be able to trade such securities as usual. Sounds risky. Anyone opted in this? TC 375K
There are rules and regulations for brokers and traders in stock market arena
That makes no sense, and sounds like more conspiracy theory nonsense. Brokerage firms lend out shares all the time, it’s not a great source of income unless it’s very hard to borrow.
I don't think it is a conspiracy theory -- if someone opts in to lend out their shares, if the company goes bankrupt then you have to wait in line with other debtors to try to get your funds back Just holding shares at a brokerage (which is what most people do) , there is both legal/sec protections, and some amount of SIPC insurance (500-750k) as a backup In simple terms, I wouldn't lend out my shares on a place like Robinhood... Places like fidelity and Schwab aren't risk free but not so bad
The money u get is mostly in cents.. also these stocks are lent to folks who then short sell the stock. If u don't want to encourage Short selling then u should not lend ur stocks
I did and I got like a couple cents per month on my 10s of k of stock. Just wasn’t worth it