Fully-Paid Securities Lending

Fully-paid securities lending

Fully paid securities lending is when our clearing firm, Apex Clearing, lends whole shares of stocks to meet the obligations of investors and institutions. 

10% of the revenue earned from lending out your shares is passed along to you.

The shares in your account are still economically yours even if they are on loan. You can still sell them the same way you could if they weren’t loaned out. 

Dividends

If your stocks receive a dividend when loaned through fully-paid securities lending, you may receive a substitute dividend payment, also known as a dividend in lieu (DIL).

Although the payment amount is the same, substitute payments in lieu of dividends are non-qualified and will be reported on tax form 1099-Misc. 

Unenroll in securities lending

You can opt-out of participating in fully-paid securities lending at any time by sending an email to M1 at help@m1.com with “Securities Lending Opt-Out” as the subject line.

For more information on this program’s details, please review Apex Securities Lending Agreement and Apex Securities Lending Disclosure.

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