Fully Paid Securities Lending Explained
Fully paid securities lending, explained: how a broker lends your shares to short sellers, who posts collateral, and why a dividend arrives as cash in lieu.
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Fully paid securities lending, explained: how a broker lends your shares to short sellers, who posts collateral, and why a dividend arrives as cash in lieu.
A payment in lieu of dividends arrives when your broker lends your shares out. Here is the full mechanic, and why the tax character differs from a dividend.