Anavex Life Sciences Corp (AVXL)

[JB3729]

I have participated in Fidelity's Fully Paid (meaning you have no margin balance) Lending Program in the past. If you have a margin balance, Fidelity can borrow shares from your account without paying you interest.

The total of all of your accounts at Fidelity must exceed $250,000 to be eligible.

The interest rate you receive varies and can change daily. Up and down.

If your shares are in a margin account, the shares you loan out are moved to a cash account once borrowed.

Fidelity sets up an escrow account at Wells Fargo and deposits the value of the shares you loan out. The amount in the escrow account changes daily to reflect the closing price of the stock you loaned out. You receive interest on the value of the escrow account. The interest is recorded daily and paid to you once a month.

Fidelity collects interest from the shorts and pays you about 60% of what they charge. Today, Fidelity is charging the shorts 24% and paying the owner of the shares 15%.

You can sell the shares you loaned out at any time. You receive a cash credit in your margin account as soon as you sell shares you have loaned out. It usually takes 2 days for the cash credit to become cash in your account. You can buy with the cash credit, in the meantime, but, you have to enter your order over the phone.