Securities Income Programs (loan your stocks)
Ally sent me a mail about participating in their securities income program related to borrowing stocks. Has anyone participated in such programs? Let’s say I have $100k of amazon stock to loan, how much could I make in a year?
Credit Karma IamQT3.14 Feb 9, 2021
They’re asking if you want to lend out your shares to someone to short the stock and apply downward pressure. Basically, would you like to risk some capital losses for some paltry interest. Which they share less than half with you.
Salesforce B3N!0FsCat Feb 10, 2021
Whatever shares you loan will barely affect the stock price. If you believe the company is worth more in the long run, might as well loan out and get some interest.
They will short them while you hold the bag?
Well.. when you short a stock ... there needs to be some underlying stock. The brokerage will loan your stock but when the person wants to buy... the brokerage will purchase from the open market. Your stock is not at risk