What is Janney’s Fully Paid Lending Program? It’s a way to potentially generate additional income on your portfolio by allowing Janney to borrow certain fully paid securities that you own. Janney’s Fully Paid Lending Program allows you the possibility of earning income by lending stocks or other fully paid securities in your account. What is Janney’s fully paid lending program?.What is the Fully Paid Lending Program? Fidelity’s Fully Paid Lending Program provides you with the opportunity to lend securities in your portfolio and earn income. What is the fidelity fully paid lending program?.So, what exactly is a Fully Paid Securities Lending Program? Essentially what you’re doing is you are lending your fully paid securities to a bank or institution and then they are then taking those securities and lends them to other clients or financial institutions. What is a fully paid securities lending program?.I fully expect you to issue a written response to this request.
No where in your sales materials does it explain the very real risks to the investors very own capital that your program carries An innocent shareholders participation in your neatly packaged Schwab Securities Lending Fully Paid Program could precipitate a permanent loss of their own capital for the promise of what looks like a rather simple way to collect an additional 1.5% annual yield. I am of the opinion that your solicitation could be a predatory manipulation of unsophisticated investors who hold shares of ABCD.įor example, if the outsized short interest in ABCD succeeds in artificially driving down the price of the shares low enough, the possibility exists that ABCD could default on some of it’s loan covenants and trigger a forced liquidation of corporate assets prematurely at distressed prices. Please tell me how I might find even a thread of fiduciary interest on your part by encouraging me to lend out my shares to short sellers (perhaps otherwise naked short sellers) who could be maliciously endangering the ability of one of the companies I own to access the capital markets. SIPC: The SIPC doesn’t cover shares on loans, which are secured by 102 collateral provided by TD Ameritrade and held at a third party bank. Typical Investment Risk: All inherent investment risks apply and share performance is subject to market fluctuation. Today I received a letter via UPS from you where you purport to be acting in my best interest by giving me a sales pitch on lending out 4000 shares of ABCD, which I own. It’s important to note that there are risks of Fully Paid Lending Income. I have never seen anything like it before so I immediately fired a rather scathing email off to the guy who signed the letter and my rep at Schwab. What bothered me was that these shares were intentionally held outside of a margin account to prevent them from being lent out. I was a little horrified because there is already a huge short interest in this stock and they don't need any help from huge brokerages like Schwab. So today I get a UPS delivery from Schwab and it's a customized pitch sheet trying to get me to lend out shares in one of my longs for 1.5% per annum.
0 kommentar(er)
