Series 24: 3.7.3.1. Lender’s Privileges And Rights Of Shorted Securities

3.7.3.1.  Lender’s Privileges and Rights of Shorted Securities

Those who lend their stock to short sellers receive a commission for the service they provide, and they earn interest on the loaned stock as well. They also retain the following privileges:

• Lenders have the right to cash dividends on the loaned stock—not from the issuing company, because the lender is not the owner of record, but from the short seller. By contr