Securities Lending: Is it For You?
Manage episode 438884318 series 2910154
Securities lending lets you lend your stocks or bonds to someone else and earn interest in return. It’s legit and has been around for a long time, with the borrower often using your securities to "short sell." You could make some nice passive income, like $800 a month, without doing much. Plus, you still own your stocks and can sell them whenever you want. But there are some catches—like losing the tax benefits of dividends, giving up voting rights, and the small risk that the borrower could default. You also lose SIPC insurance protection on lent securities. Overall, it can be a good way to make some extra money, but you need to weigh the risks and read the fine print before jumping in.
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Learn more about Mike and my services at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/
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