Lend your stocks with Stake: how and why you’d want to do it
The thought of giving someone else access to your hard-gotten stocks and shares in companies or funds you love is a new concept for a lot of us, but it turns out, not the worst decision you could make! Of course with anything regarding your own cash and investments, do your own research, but here’s some good info to know about what new tricks Stake is offering to those who hold a portfolio with the online broker. What is stock lending? Stock lending with Stake is a concept whereby an owned security is lent to a borrower (to enable practices such as Stock Arbitrage, Index and ETF trading or Hedging) and that borrower pays afee. Similar to an interest payment for borrowing cash. Why is Stake doing it? Well, many traditional stock brokers practice securities lending but typically keep all the returns to themselves. Stake instead has redefined the model to ensure their customers get part of this return.A seamless digital experience will give you control over the lending so you can start earning income on your stocks without having to lift a finger. What else is there to know? Largely, it’s a fair simple concept. You loan out your stocks for a fee that gets paid to Stake and they then share that fee with you. Thing is though, when loaning out, you temporarily transfer ownership of the holding to the loanee, meaning you’ll get a lending fee at a pre-determined frequency and still be owed dividends from the stocks you hold. Bonus! The… Read More
