I recently came across there is an option for stock lending to gain additional income.
The only downside to this is I will not be able to attend AGM during the stock lending period.
Other than that, is there any risk involved in this?
Once the shares are being lend out, your ownership is being temporary transfer to the borrower. The risk during that time is as follow:
1.No voting rights
2.Unable to attend AGM
3.If a borrower fails to return loaned securities by due date, you may be subject to the risks of receiving your loaned securities or sales proceeds late when you have indicated the intention to terminate the loan, either by recalling or selling the loaned securities.
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