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1. Nordnet and Avanza both do this, but they let you opt out. Specifically to Avanza, if you have stocks in a kapitalförsäkring then you are automatically inclu

1. Nordnet and Avanza both do this, but they let you opt out. Specifically to Avanza, if you have stocks in a kapitalförsäkring then you are automatically included and if you don't like this, you need to opt out. 2. Yes, looks like it. Have a look at https://www.avanza.se/konton-lan-prislista/konton/kapitalforsakring/aktielan.html https://www.avanza.se/konton-lan-prislista/konton/kapitalfor.... (Quick translation from the Avanza link: they have a security worth 105% of the value of the borrowed stocks, so if Morgan Stanley goes bankrupt, Avanza tries to buy the stocks back. If trading is stopped, or stocks cannot be bought back for other reasons, you'd be compensated monetarily.) Other countries may of course do things differently.

wodenokoto 6y ago
My Swedish isn’t great, but is avanza saying that if you have a capital insurance then they are lending out your stocks ... that doesn’t sound like insurance at all.
- jnurmine 6y ago
  I don't know what you define as insurance, but in this case it's basically something which contains things you can invest or save money to, and you get to name a beneficiary (e.g. your child/grandchild/wife/husband/etc.) who gets the money in case of your death. Plus some other details. Otherwise it like a "normal" brokerage account, except the tax rules are a bit different, no capital tax on profit but you pay a certain percentage based on the size of the insurance (which has details like in which quartal you moved money in). Dividends are not capital taxed, there's a "template tax". Losses cannot be deducted. Etc. Anyway, with the lending of your stocks the chance of everything going bad is very, very low, but of course it's still non-zero. I guess some people opt out not because of the inherent risk but because they don't like short selling as a concept.

wodenokoto 6y ago

My Swedish isn’t great, but is avanza saying that if you have a capital insurance then they are lending out your stocks ... that doesn’t sound like insurance at all.

jnurmine 6y ago
I don't know what you define as insurance, but in this case it's basically something which contains things you can invest or save money to, and you get to name a beneficiary (e.g. your child/grandchild/wife/husband/etc.) who gets the money in case of your death. Plus some other details. Otherwise it like a "normal" brokerage account, except the tax rules are a bit different, no capital tax on profit but you pay a certain percentage based on the size of the insurance (which has details like in which quartal you moved money in). Dividends are not capital taxed, there's a "template tax". Losses cannot be deducted. Etc. Anyway, with the lending of your stocks the chance of everything going bad is very, very low, but of course it's still non-zero. I guess some people opt out not because of the inherent risk but because they don't like short selling as a concept.