New feature - share lending - Impacts?

šŸ¤ Help
1

Hello,
I just received an email about this new feature.
But I have several questions, because I could not determine if there are negative points to lend our shares, for example :slight_smile:

  • if lending the shares, will this impact the dividends amounts that we received until now ?
  • can we select which shares / stock names we want to lend ?
  • can we select the number of shares we want to lend ?
  • what impact if we stop lending our shares ?
  • what are the other potential disavantages / risks if lending our shares ?

Or am I being too prudent, i.e. lending our shares only has advantages ?

thanks in advance!

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2

No

No

No

None

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3

the impact - I will make some money as I have substantial shares outside my ISA. thanks T212!

I wonder what shares would be more likely to be lent than others. I assume more popular stocks like Tesla, Apple etc. would be more likely to be lent than some random low volume share.

Now I think about it if they lent out all of X stock then everyone suddenly sold X stock then that might cause an issue, (A potential wait to sell) but popular stocks with many holders then they would always keep some ready for selling I would assume.

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4

thank you for the link !

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5

Will fractional shares be available to be lent too or is this only for complete shares?

6

how do you enable/disable lending?

7

As far as I can see, I have an ā€˜Investingā€™ type of account.
My question is : can I disable this share lending feature ? And if yes, where / how ?

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8

itā€™s not rolled out until 5/7/23 but according to the email sent there is a ā€˜Disable Lendingā€™ button which would enable you to disable it easilyā€¦

Full control. You can disable or enable it anytime with a single tap.

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9

All shares are eligible for share lending (unless of course held in an ISA).

As @trader787 mentions, there will be a button from within the app thatā€™ll give you that option.

Thereā€™s a Q&A section at the bottom of this :point_right: page. Check it out.

11

thank you for your reply!

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12

Hello @B.E,

when will start this Feature?

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13

Is this turned on for anyone?

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14

I still donā€™t get the point of this disable lending feature, if anyone knows?
As if a hedge fund or any of the big institutional investors would struggle to find sufficient shares to short at any given time.

15

The answer is simple. If you lend out your shares, you lose voting rights.

Share lending is used for more than shorting you know! Itā€™s used to stabilise and add liquidity to the markets and buy voting rights.

16

The Q&A page has being removed. Has the feature being cancelled or delayed?

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Thereā€™s an update in this thread. TLDR - slow rollout.

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18

this just went live for me. looks interesting but only a few shares that are leant out I think. it lists shares which are highest yielding and most borrowed. (AMC Highest Yielding and BYND most borrowed) and there are only 10 stocks listed in each.

live for anyone else?

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19

Itā€™s live for me. I have 9 being lent.

Itā€™s simple and easy. Overall a great addition to the product, with little user oversight needed.

I just canā€™t get my head around Collateral. Is someone able to explain that in simple terms?

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20

In simple terms, collateral is an asset that is held against a loan or some other financial obligation. Imagine you want to borrow money from a bank or a friend to invest in the stock market, but they want some assurance that they will get their money back. In this case, you might offer your stocks and shares as collateral. It means youā€™re telling the lender, ā€œIf I canā€™t repay the loan as promised, you can take ownership of my stocks and shares instead.ā€ It basically acts as a safety net and is a common practice when engaging in certain financial transactions.

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21

sorry for the dumb question but how do you get these stats/info?