Fidelity's Fully Paid Lending Program provides you with the opportunity to lend securities in your portfolio and earn income. If there is demand in the securities lending market, generally due to short selling, scarce lending supply, or corporate events, Fidelity may borrow certain eligible securities until either you or Fidelity elect to close the loan.
Risks of Fully Paid Lending Programs 1. Loss of Voting Rights
When your shares are lent, the borrower becomes the temporary "holder of record."
You lose proxy voting rights during the loan period, which can matter during shareholder votes on mergers, board elections, or governance issues.
2. Dividend Substitutes (Tax Implications)
If a dividend is paid while your shares are on loan, you receive a "substitute payment" instead of a qualified dividend.
These substitute payments are typically taxed as ordinary income, not qualified dividends — potentially increasing your tax liability.
3. Counterparty Risk
Although brokerages require borrowers to post collateral (usually 102% of market value), there's still a theoretical risk if the borrower defaults and the collateral loses value rapidly.
Most brokerages mitigate this with daily mark-to-market adjustments, but it's not zero-risk.
4. Market Liquidity Risk
You retain the right to sell your shares at any time, but in volatile markets, there could be a delay in recalling shares from the borrower, especially if demand is high or the stock is hard to borrow.
5. No SIPC Coverage for Lent Shares
The Securities Investor Protection Corporation (SIPC) does not cover shares that are out on loan.
If your broker fails while your shares are lent, recovery could be more complex.
6. Limited Transparency
Some brokers don’t disclose exact lending rates or borrower identities, making it harder to assess whether you're getting fair value.
Rates can fluctuate daily, and you may not know how aggressively your shares are being lent.
Fidelity's Fully Paid Lending Program provides you with the opportunity to lend securities in your portfolio and earn income. If there is demand in the securities lending market, generally due to short selling, scarce lending supply, or corporate events, Fidelity may borrow certain eligible securities until either you or Fidelity elect to close the loan.
我们经常出借securities，股票债券都可以出借，挣点零花钱
我一会儿贴几个术语
如果是长期投资或卖了covered call。
还有可能是被挤空的目标
不影响操作可以随时卖掉
至少没有底线方面
这个月， 另一个只借出了19股收进了$2.92， 股票还涨了点
Risks of Fully Paid Lending Programs 1. Loss of Voting Rights
When your shares are lent, the borrower becomes the temporary "holder of record."
You lose proxy voting rights during the loan period, which can matter during shareholder votes on mergers, board elections, or governance issues.
2. Dividend Substitutes (Tax Implications)If a dividend is paid while your shares are on loan, you receive a "substitute payment" instead of a qualified dividend.
These substitute payments are typically taxed as ordinary income, not qualified dividends — potentially increasing your tax liability.
3. Counterparty RiskAlthough brokerages require borrowers to post collateral (usually 102% of market value), there's still a theoretical risk if the borrower defaults and the collateral loses value rapidly.
Most brokerages mitigate this with daily mark-to-market adjustments, but it's not zero-risk.
4. Market Liquidity RiskYou retain the right to sell your shares at any time, but in volatile markets, there could be a delay in recalling shares from the borrower, especially if demand is high or the stock is hard to borrow.
5. No SIPC Coverage for Lent SharesThe Securities Investor Protection Corporation (SIPC) does not cover shares that are out on loan.
If your broker fails while your shares are lent, recovery could be more complex.
6. Limited TransparencySome brokers don’t disclose exact lending rates or borrower identities, making it harder to assess whether you're getting fair value.
Rates can fluctuate daily, and you may not know how aggressively your shares are being lent.
Risk vs. Reward: A Quick Framework