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As alluded to in his final point, with IB, you can loan your stocks for people to short. This can yield you a substantial revenue stream for stocks with high sh
by hervature 7y ago
As alluded to in his final point, with IB, you can loan your stocks for people to short. This can yield you a substantial revenue stream for stocks with high short interest like TSLA. IB splits it 50/50 (fact check me on this) whereas I assume RH doesn’t even give you the option and uses it for their revenue stream.
- teej 7y agoTFA says a gain of 7bp. I wouldn’t call that “substantial” in any sense of the word.
- thedufer 7y ago> This can yield you a substantial revenue stream for stocks with high short interest (emphasis mine) 7bp is an average. The article also points out that the yield occasionally goes as high as 100% per year.
- neural_thing 7y agoTesla stock costs under 2% a year to borrow from IB to short it. (source: short TSLA, IB customer)