Now, with more retail investors accessing the markets, demand for share liquidity is on the rise. So long as they hold securities with market demand behind them, investors can position themselves as lenders, earning interest on stocks that other investors borrow from them.įully paid securities lending isn’t a new concept however, it’s largely been an institutional practice up to this point. Yet, in a twist, they have the power to profit regardless of current market conditions or overall portfolio performance. Enter: securities lending.įully paid securities lending programs are yet another way retail investors can capitalize on the moneymaking ability of their portfolios. Now, thanks to discount brokerages like Robinhood, fully paid securities lending is on the rise.Īs trading activity ramps up and retail investors occupy a larger and larger portion of the float, brokers have begun looking for new ways to promote and maintain liquidity among traders. In the age of online, decentralized brokers, the way people invest has changed and with it, new and exciting incentives have emerged. The past decade has been a prosperous one for retail investors.
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