- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Fully Paid Shares Lending Program - Etrade
Posted on 7/28/21 at 10:02 am
Posted on 7/28/21 at 10:02 am
I got an email about lending my fully paid shares for interest yesterday from Etrade, and am trying to figure out what the catch is. I can still trade just as I normally would, and I would make a bit of money.
Here's the description. I would assume most trading platforms do/offer this.
I don't really give a shite if they sell my shares short...maybe I can make some money off WKHS and RIDE
What am I missing?
Fully Paid Lending Program
Here's the description. I would assume most trading platforms do/offer this.
quote:
When you enroll your eligible accounts in E*TRADE’s Fully Paid Lending Program, you agree to allow E*TRADE to borrow your fully-paid-for securities (i.e. positions not purchased on margin) in exchange for potential income. We then loan your shares to other investors and market participants through the securities lending market if they become lendable due to high borrowing demand (often due to short selling).
I don't really give a shite if they sell my shares short...maybe I can make some money off WKHS and RIDE
What am I missing?
Fully Paid Lending Program
This post was edited on 7/28/21 at 10:02 am
7
Posted on 7/28/21 at 10:19 am to Chucktown_Badger
I was hesitant but wound up doing it at Schwab....easiest money you'll ever make for doing nothing. Wish I had done it sooner.
Shares were loaned out to short sellers.
Shares were loaned out to short sellers.
Posted on 7/28/21 at 10:20 am to doomsday
Nice. I'm going to sign up for it. I assume everyone doesn't get accepted or I would've received the email right when I restarted my account.
Posted on 7/28/21 at 10:45 am to Chucktown_Badger
I tried to apply, but it said I had no qualified accounts. Darn.
Posted on 7/28/21 at 11:25 am to Chucktown_Badger
I only have mutual funds with Etrade, assuming they are not targeting those, just individual stocks?
Posted on 7/28/21 at 11:27 am to thunderbird1100
Yeah, individual stocks only I believe.
Posted on 7/28/21 at 11:32 am to Chucktown_Badger
quote:
What am I missing?
They’re going to lend your shares to people that are trying to drive down the price of your stock, but they’ll pay you for it. You also can’t vote if the shares are actively on loan.
It’s not typically a ton of money unless you own scarce stocks.
Posted on 7/28/21 at 11:32 am to doomsday
What kind of returns
Posted on 7/28/21 at 1:12 pm to slackster
quote:
They’re going to lend your shares to people that are trying to drive down the price of your stock, but they’ll pay you for it. You also can’t vote if the shares are actively on loan.
It’s not typically a ton of money unless you own scarce stocks.
I'm fine with it...I guess it's the old adage where if it's not me, it'll be someone else who they buy from. And who knows, maybe I can loan out my shares to someone shorting and then the morons from Reddit will try and squeeze them and I double dip
Posted on 7/28/21 at 1:53 pm to Chucktown_Badger
Just a heads up I did find this out:
Review on program from someone
So if you have dividend heavy stocks, this is a big deal potentially.
Review on program from someone
quote:
Dividends are paid “cash in lieu” – Under current tax law, qualified dividends receive preferential treatment. In other words, the income is taxed at lower rates. If a dividend is paid for any shares that are lent out, the dividend received will be credited to the account as “cash in lieu” and do not qualify for preferential treatment. This means that all dividends could be taxed at ordinary income tax rates.
So if you have dividend heavy stocks, this is a big deal potentially.
Posted on 7/28/21 at 5:28 pm to Chucktown_Badger
What kind of returns do you see on your account? I just went ahead and applied for it and got approved immediately.
From what I read I guess it will vary wildly person to person. Wondering if it was really anywhere near 10% though.
From what I read I guess it will vary wildly person to person. Wondering if it was really anywhere near 10% though.
This post was edited on 7/28/21 at 5:44 pm
Posted on 7/30/21 at 11:37 am to Who_Dat_Tiger
quote:
What kind of returns do you see on your account? I just went ahead and applied for it and got approved immediately.
I have no idea. I was also approved immediately and this is my first day in it. I've already got the following absolute dogs in my portfolio making me a few bucks:
RIDE, ZOM, LCID, HMBL, WKHS, CPNG
AT stock well represented
This post was edited on 7/30/21 at 12:16 pm
Posted on 7/30/21 at 5:03 pm to Chucktown_Badger
Got my first report. Making out like a bandit
But in all seriousness, they didn't loan many shares, and I don't have many of the ones that were loaned out.
That interest rate on CPNG...yikes.
But in all seriousness, they didn't loan many shares, and I don't have many of the ones that were loaned out.
That interest rate on CPNG...yikes.
Posted on 7/30/21 at 5:08 pm to Chucktown_Badger
Yea, I signed up Monday after seeing this thread; and have made like .15 this week. They pretty much have only used my entire position of MP.
I'm torn. I mean, I suppose if it's things you are holding long anyway, it doesn't matter.
I'm torn. I mean, I suppose if it's things you are holding long anyway, it doesn't matter.
Posted on 7/30/21 at 5:10 pm to Pendulum
The way I look at it, if they're not loaning out our shares, they'll pay someone else to loan out theirs
Posted on 7/31/21 at 10:33 am to Chucktown_Badger
good to see i am not the only one who bought COUPANG
i have waaaay more shares than you tho.
i have waaaay more shares than you tho.
Posted on 7/31/21 at 10:49 am to Fat Bastard
Oh, i have way more than 5. I bought 10
That was my "see what happens on IPO day" purchase, where I learned it's usually a bad investment.
That was my "see what happens on IPO day" purchase, where I learned it's usually a bad investment.
This post was edited on 7/31/21 at 10:50 am
Posted on 7/31/21 at 7:07 pm to Chucktown_Badger
quote:
Oh, i have way more than 5. I bought 10
quote:
That was my "see what happens on IPO day" purchase, where I learned it's usually a bad investment.
i've done the same couple times with IPO's. low shares. understood. this time i bought way more. ugh
Posted on 7/31/21 at 8:48 pm to Fat Bastard
Do they only borrow the shares that people wish they’d never bought?
Posted on 8/1/21 at 6:01 am to Chucktown_Badger
This is only for high short fee stocks where short shares are hard to find. In those stocks many retail investors and even some larger investors are requesting their shares not be lent out. So the brokers have to share the lending profits now to incentivize people to allow their shares to be shorted
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News