InterDigital Inc (IDCC)

[chinookslayer]

The broker earns interest for lending the shares, and generally a commission.


http://www.investopedia.com/ask/answers/05/shortsalebenefit.asp

"As your question suggests, the broker does receive an amount of interest for lending out the shares, and it is also paid a commission for providing this service. In the event that the short seller is unable (due to a bankruptcy, for example) to return the shares he or she borrowed, the broker is responsible for returning the borrowed shares. While this is not a huge risk to the broker due to margin requirements, the risk of loss is still there, and this is why the broker receives the interest on the loan."

or here
http://74.125.155.132/search?q=cache:z7sfU7xQqGwJ:en.wikipedia.org/wiki/Short_%28finance%29+borrowing+shares+what+is+the+interest+rate&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a

"The vast majority of stocks borrowed by U.S. brokers come from loans made by the leading custody banks and fund management companies (see list below). Institutions often lend out their shares in order to earn a little extra money on their investments. These institutional loans are usually arranged by the custodian who holds the securities for the institution. In an institutional stock loan, the borrower puts up cash collateral, typically 102% of the value of the stock. The cash collateral is then invested by the lender, who often rebates part of the interest to the borrower. The interest that is kept by the lender is the compensation to the lender for the stock loan."