3 ms·
Not exactly, you should dig deeper, many brokers do use your shares. If you agree to it… and you very well could have not reading fine print. “To be clear, yo
by rileymat2 4y ago
Not exactly, you should dig deeper, many brokers do use your shares. If you agree to it… and you very well could have not reading fine print.
“To be clear, your brokerage firm cannot lend out your stocks without your permission. However, you may have signed a customer agreement that explicitly allows your broker to lend out your securities. This clause is often tucked deep within the customer agreement, and few investors pay much attention to it.”
https://www.sonnlaw.com/faq/can-my-broker-lend-my-shares/ https://www.sonnlaw.com/faq/can-my-broker-lend-my-shares/
- kasey_junk 4y agoThose shares would still list you as the beneficial owner at Cede though so if the broker becomes insolvent (perhaps due to counterparty risk from short sellers) your shares are not available to other creditors and continue to be yours.