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For this example let's say you have a stock portfolio that is paying you dividends and you take out a securities-based line of credit against the portfolio from your local bank. What happens to the dividends?

Do you still receive the payments? Does the bank take them for the duration of the loan? Does the bank return them after you repay the loan?

What happens to the dividends?

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    Do the terms of the loan specify what happens to them? Or are you asking hypothetically?
    – D Stanley
    Jul 7, 2021 at 13:43
  • I'm asking hypothetically. Jul 8, 2021 at 1:38

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With securities lending, when you lend shares you don't have the right to dividends; the borrower does.

But you are talking about getting a personal loan collateralized by your securities. In this case you keep the shares and the dividends.

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