Securities lending is a kind of investment activity that allows whole-share owners of securities to earn extra income by loaning out their shares. Partial share owners are not eligible for securities lending.
The owner of the whole-share (the lender) loans their securities to a financial institution, such as a brokerage firm, a bank, or hedge fund. The financial institution is the borrower. The borrower pays a loan fee to the lender in exchange for the securities. The fee varies based on market demand.
|Monthly interest payments on top of investment returnsCan still sell security at any time||
No voting rights*
Interest payments may not be covered by SIPC protection
*The borrower (not the lender) has the right to vote, provide consent, or take any similar action regarding the loaned securities if deadlines for these actions fall within the term period of the loan.
Opting into securities lending?
Stash automatically opts you into the Securities Lending program when you have more than $50 in your Personal brokerage account and have agreed to participate in the program.
Opting out of securities lending?
Please note, you may still get notifications of payments after the date at which you have opted out.
Related questions View all Invest
Q. Managing Your Stock-Back® Debit Card
Stash makes managing your Stock-Back® Debit Mastercard® easy. You can order a new card, activate your card, How can I order a new card? You can easily order a replacement Stock-Back® Card1 24/7 right from your Stash account.…
Q. Linking your External Bank Account with Micro-deposits
Looking for an easy way to transfer money on and off of Stash? Link your external bank account to your Stash account! There are two ways to link your external bank account to Stash: Login to your external bank account from the Stash website [learn more here] Request micro-deposits into your external bank account [keep reading below for more info] Micro-deposits are two small amounts (usually less than $0.50) that Stash deposits into your external bank account.…
Q. Investing Glossary
| A | B | C | D | E | F | H | L | M | P | R | S | U | # | A ADR fee ADR stands for American Depository Receipt. An ADR fee is charged on foreign stock investments.…
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.Ask your question
Fiduciary 101: Why it’s Our Job to be Your Advocate
It’s a big word that means a lot when it comes to handling your money. It defines a relationship built on trust and duty.