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European stockbrokers may not lend out your shares. I don’t think US brokers do that either. Where are you from?
by asldjajlfkj 4y ago
European stockbrokers may not lend out your shares. I don’t think US brokers do that either. Where are you from?
- shawabawa3 4y agoInteractive Brokers (US company but operates globally) have something called "Stock Yield Enhancement Program" which you can opt into, they give you 50% of the interest on any shares of yours they lend out This is the case in the UK at least, you may need to have "Professional Client" MiFID status which means a lot of EU consumer protections don't apply to you
- ArtTimeInvestor 4y agoDo you have a link to back that up, that European stock brokers cannot lend out shares?
- colechristensen 4y agoStock loan absolutely is a thing in the US. Sometimes you get a cut, sometimes your broker does it in the background without giving you anything.
- frumper 4y agoJust curious, if they do it in the background how do they get around dividend complexity? The company won't pay 2 people a dividend for the same share.
- colechristensen 4y agoThe borrower pays the dividend to the owner, all handled with brokerage mechanisms.