Questions tagged [security-lending]

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What happens to the dividends when you enter into a securities-based line of credit or “portfolio loan”?

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 ...
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7answers
10k views

When an investor makes money on a short, who loses the money?

Is it the securities lender? If so, do they discriminate on the stocks they are willing to lend, or will they lend any stock? It seems like the business of lending securities would be extremely risky....
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0answers
24 views

What are the tax consequences of loaning securities to one's broker aside from the dividends being paid as payment-in-lieu taxed as income?

I'm trying to understand the tax consequences of loaning securities to one's broker in the United States: The dividends of the loaned security are being paid as payment-in-lieu, which is taxed as ...
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1answer
56 views

If I loan securities to my broker, can this turn long-term capital gains/losses into short-term capital gains/losses?

E.g., if I purchase stock A on 2020-10-30, loan it to my broker from 2021-02-01 to 2021-11-20 and sold it on 2021-12-01 making a capital gain of X USD, will that count as long-term or short-term ...
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3answers
4k views

How can I use my stock portfolio in order to get a lower interest rate mortgage?

Background I have a decent amount of money saved up, most of it invested in the stock market. Right now I'm thinking about getting a condo / house. I have more than enough in my stock portfolio to ...
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1answer
122 views

How securities lending works

After doing some research, literature suggests that "most" securities lending happens over the counter as opposed to securities trading which is mostly done through a centralized electronic exchange. ...
3
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1answer
551 views

Securities lending program vs a Margin Account

Suppose I have a brokerage account and I am long on a stocks very heavily and there are short sellers who need this stocks from my broker. There are two ways a stock broker can lend securities held ...