Lender’s Privileges and Rights of Shorted Stock
Those who lend their stock to short sellers receive a commission for the service they provide, and they earn interest on the collateral sitting in their margin account. 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 contract, the short seller is obligated to pa
