Yeah, I know the obvious is demand...I get that part.
Now At Fidelity (on their website), is a tab to see if you wish to loan out your stocks. Fine, it saves me having to jump through hoops...They have made it simple. I went through the process...It took less than a minute.
Many of my stocks are optioned...Way out of the money for cash flow. They were not available.
Fidelity gave me two stocks that could be lent out...QQQ and Terumo (TRUMY), a Japanese company with no options in the US. The QQQ was offered at .25% and the TRUMY was offered at something like 13%.
Why the difference in price?
I know it's been asked before, but what could go wrong by doing this? Please the worse case scenarios...Thanks.
PS Will the interest trigger a separate form for my taxes...
Now At Fidelity (on their website), is a tab to see if you wish to loan out your stocks. Fine, it saves me having to jump through hoops...They have made it simple. I went through the process...It took less than a minute.
Many of my stocks are optioned...Way out of the money for cash flow. They were not available.
Fidelity gave me two stocks that could be lent out...QQQ and Terumo (TRUMY), a Japanese company with no options in the US. The QQQ was offered at .25% and the TRUMY was offered at something like 13%.
Why the difference in price?
I know it's been asked before, but what could go wrong by doing this? Please the worse case scenarios...Thanks.
PS Will the interest trigger a separate form for my taxes...
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