Lending out stock...Why the descrepancy in price??

Discussion in 'Chit Chat' started by Cabin111, Sep 21, 2023.

  1. Cabin111

    Cabin111

    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...
     
    Last edited: Sep 21, 2023