
Stock Lending Program
Fully Paid Stock Lending Program
Earn interest income by lending stock you already own through CG’s Fully-Paid Securities Lending Program.
How It Works
Step 1
You lend your securities to CG
Step 2
CG lends securities to a borrower
Step 3
Borrower pays interest to CG
Step 4
50% of interest is awarded to you
Example Return
Below is the calculation of potential interest income on the Fully-Paid Securities Lending Program, based on a $500,000 position.
FAQs
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Fully-paid securities are securities that have been completely paid for and are fully owned by the investor. These securities are held in a segregated account, indicating that there are no outstanding debts or obligations related to their purchase.
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Financial institutions and brokerage firms borrow securities for short selling, market making, hedging, portfolio rebalancing, or settling failing trades.
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Yes, when you lend your securities, you continue to own the shares and retain the market exposure inherent in ownership. For example, if the share price increases while your securities are on loan, the value of your position will still increase.
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You can sell your securities that are on loan at any time, but doing so will automatically terminate the securities loan.
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You may terminate the loan for any reason, at any time, and without penalty, by contacting your CG representative.
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While your securities are on loan, the voting rights transfer to the borrower. To exercise voting rights, options, conversion privileges, or other benefits while your position is on loan, your CG representative can help you temporarily pause the loan.
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Loan rates can vary significantly, ranging from 0.1% to 1000%, depending on the security held and the borrowers seeking loans. Loan rates will adjust throughout the year based on market conditions.
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The program is governed by a Fully-Paid Securities Lending Agreement, Risk Disclosure Statement, and Letter of Authorization. These agreements will specify terms, duration, interest rates, and collateral requirements.
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To participate in this program, you must be lending out a minimum of $250,000 value in a stock. You must also not be an insider or have restrictions on the stock.