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The broker needs your agreement to lend out stock. Generally that's only part of the agreement for margin accounts, not cash accounts.
by tempestn 6y ago
The broker needs your agreement to lend out stock. Generally that's only part of the agreement for margin accounts, not cash accounts.
- LatteLazy 6y agoI thought most of the online brokers had it by default now? Isn't it part of the "no commission but we do literally anything else to make a buck" business model? If not then he either doesn't own all the stock or there is some fraud here. As it is, it's the simplest explanation and one he hasn't ruled out. So he needs to check there first. It's possible they lent it by mistake or he agreed as part of the 10,000 page T&C he signed when he joined...
- tempestn 6y agoPerhaps now. I'm in Canada so don't know the details of the Robin Hoods and such. The OP is from 2005 though.
- LatteLazy 6y agoIt's interesting. I'm a limey brit (sorry, I should have said sooner), brokers here were always able to lend stock without involving the owner. It's one of the reasons that brokers here have always been pretty cheap. It also helped Unit Trusts (ETFs etc who can do the same) take off quickly here.