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Saturday, 07/16/2016 8:30:26 PM

Saturday, July 16, 2016 8:30:26 PM

Post# of 432595
Slightly OT, Securities Lending

In connection with short sales, there have been posts here advising investors to inform their brokers that their stock is not available to be loaned for any reason. I recently bought some TESLA shares in a ROTH account with Schwab. Soon after, I received a request to allow my shares to be loaned (TESLA has, as you might imagine, a significant short interest). The interesting thing about Schwab's request was an offer to pay me 6% per year of the stock value. My questions to experienced investors on this board: Is this common? Is there any disadvantage in accepting Schwab's offer?

The reason I don't think this post is completely off-topic is that shorting and lending shares have been mentioned often in connection with IDCC shares.

Thanks in advance.

LA
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