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I was wondering if in a margin account the brokera

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Post# of 82687
(Total Views: 294)
Posted On: 10/22/2017 12:03:43 PM
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Posted By: riskreward007
Re: Stargazer2000 #3657
Quote:
I was wondering if in a margin account the brokerage firm also gets reimbursed for loaning a customer's stock but keeps it...



Yes, if you have shares in a margin account, the broker can loan them out (for shorting) and keep the money for loaning them.

Margin accounts are especially lucrative for brokers, as they don't have to pay anyone to loan shares or ask anyone's permission (it's in your margin account contract).

If your broker was willing to pay you that much to borrow your shares for shorting, they obviously make big $$$ doing this.



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