Did you know that you can rent shares that you normally don't trade? In addition to receiving rent, you can earn dividends normally. So see below how this lease works.
Did you know you can rent shares? see how
Leasing shares has the same logic as leasing anything else, such as a property or a vehicle. The campaign consists of two parties: the owner (gender) and the tenant (borrower).
In other words, the investor owns the shares and offers them to another investor who is interested in using them as a loan. Contract means the establishment of rates, guarantees and rental terms, that is, the expiration of the rental contract.
This is interesting for the owner of the stake (donor), as it is a way to increase the profitability of the portfolio. For those who rent shares, it is necessary to operate in multiple ways, such as short selling or long and short operations, in a favorable way, in shares that are about to fall.
How does a share lease work?
For the owner (donor), it is important to inform the broker of your interest and the estimated conditions under which the shares can be rented. Brokers offer paid custody and clients can rent their shares to interested parties.
For tenants (borrowers), it is necessary to have a guarantee in accordance with the brokerage's requirements, which can be guaranteed through Direct Treasury Bonds, CDBs, LCI/LCA or other means. There is a requirement to guarantee the compensation of funds at the end of the contract term. After depositing the deposit, the “lessee” investor will be able to rent his share.
It is worth mentioning that the entire process is mediated by a broker or intermediary. Investors do not need to have a direct relationship. Both individual investors and investors can take advantage of the service.
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