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/ #POST-212353
REDDIT
Are there substantial risks to participating in my broker's security lending program?
From what I understand, I would be loaning my shares to (mostly) short sellers in return for a small amount of income. These short sellers have to put up collateral, often over 100% percent of the value of what they borrow. With all the crazy financial engineering that Wall Street does nowadays, I'm working what kind of risk I'm actually taking on if I participate in these plans.