Securities Lending
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Q. What is Investment Lending/Securities Lending?
Securities Lending is a kind of investment activity that allows whole-share owners of securities to earn extra income. The owner of the whole-share (AKA the lender) loans their securities to a financial institution, such as a brokerage firm, a bank or hedge fund.…
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Q. What are the benefits of Securities Lending? What are the drawbacks?
Some potential benefits of securities lending The benefit of Securities Lending is the interest payments, which are typically paid each month by the borrower to the lender. The lender (in this case, the Stasher) earns this money, on top of owning the investment.…
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Q. Can investments be lost in a Securities Lending program?
All investments borrowed through a Securities Lending program are secured with collateral for 100% of the value of the security. This means that the borrower is providing cash (or another asset/item of value) for the whole value of the share. In some cases,…
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Q. Can I still vote on my loaned securities since I still own them?
Typically, no. 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.…
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Q. How Do I Opt In to or Out of Securities Lending?
Eligibility and Opt In To Securities Lending If you signed up with Stash after August 2018 , you are automatically opted in to the Securities Lending program, when you have more than $50 in your personal brokerage account. If you signed up for Stash prior to August 2018,…
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Q. What is a security?
A security is a technical term for a traded investment. With Stash, a security means single stocks and ETFs. If you’d like to learn more about the difference between these two types of investments, check out this article on Stash Learn.…
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