Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (62415)	8/29/2019 12:04:23 PM
From: John Koligman	2 Recommendations Recommended By Elroy Jurgis Bekepuris Respond to of 78752

I have been with Schwab for a long time and I believe EKS deals with them also, although he can confirm this for you. They have such a program. There are more details available but you have to log on to their client site. Schwab borrows the shares and lends them to other clients or financial institutions. Securities are usually borrowed to facilitate a short sale. In exchange for lending these shares, you are paid income. In general, the greater the demand for your securities, the higher your potential income. Schwab's Securities Lending Fully Paid Program - Charles Schwab

To: Elroy who wrote (62415)	8/29/2019 3:12:15 PM
From: E_K_S	Respond to of 78752

After the 2008/2009 crash, I converted 95% of my equities to a 'cash' account. I opened a separate account for margin so I could write covered calls. I get emails from my broker time to time if I want to lend 'certain' shares of stock where they will pay me interest. Typically these are shares w/ (1) low float, (2) people want to sell short and have no shares and/or (3) speculative micr-cap huge movers. Got a request on RKDA a recent company I own shares in but VERY "volitile". The issue I had with having my shares held in a margin account is any 3rd party that might be on the other end of using those shares (remember you hypothicate them to your Broker) could 'blow-up' and/or sell your shares and can not buy them back so you only have the word from your Broker (and the counter parties) you will be made whole. It would/could take time to sort everything out and you have no equity (access to those funds) in the mean time. If you have shares your broker wants, they will get in touch w/ you. FWIW, I still found it interesting that in this new digital currency paradigm. BitCoin must have some value if people/firms will pay you 8% interest to borrow it. But you are not assured you will ever get it back (so new never tested that). EKS