What’s up money geeks, mr v, here welcome to another article guys so in today’s article we’re going to be looking at something new, something exciting we’re going to be looking at stock lending program that might sound crazy to you. You’re, probably thinking like mr v, okay, we’ve talked about different ways of making money, uh or generating income here on the blog talk about side, hustle talk about investing in the stock markets, talking about investing in dividend, stocks that pay you monthly or quarterly dividends, um.
All those are ways of making some extra money, but there’s another way that I just kind of stumble on it. Um and – and this is specific for weibo. So if you have the weibo app and you have stocks and weibo that you have bought and holding long term, this applies to you um. This is specifically for you. I don’t know if the other brokers do have this particular program, i’m going to do some research, but as of right now I haven’t done any research yet so um.
The program again is called the stock lending program. So basically, if you own stocks, so you’re holding for long term, let’s say one year: two year, three years, those stocks, you can actually lend them out and actually make money and make either monthly uh income from lending your stocks out. So the way it works is, you would give out your stocks and then they would calculate your monthly income based on the price of this stock based on the quantity of the stocks and then the interest rate.
And then that’s how much you’re going to be getting paid. So, let’s jump into the app and actually walk through it and read. Some of the uh frequently asked questions and just understand it. So if it’s something that you wan na you wan na really um get into so let’s open up weibo here so once you get into weibo, what you want to go is under the app. If you go to more and then scroll down, you would see where it says: um stock lending program.
So if you click on stock lending program, so basically um. This program is open to anybody that has a weibo account that has stocks that they’ve paid for fully and by paying for fully means. If you have a cash account, when you buy a stock you’ve paid for that stock fully, so you own the stock and then, if you’re keeping it you can actually um. Just you know loan out that stock and make money. So let’s read through this so again you start to say: stock lending income program, um earn extra income from fully paid stocks in your account guys again like I said this is specifically for weibo, so it says so, hey again, i’m reading directly from weibo.
Com. So what is the stock lending program says? The stock lending income program provides you with the opportunity to earn extra income on fully paid stocks held in your account by allowing weibo to borrow certain stocks, keyword certain stocks, so it means they’re, not borrowing every stock. So, even if you have certain stocks, they’re, probably like nope, that stock is not good enough for us to borrow it.
While your shares are on loan, you will be paid an income that is accrued daily and accredited to and credited to your account on a monthly basis, which is interesting so um here. If you look at the image here, uh weeble would borrow stocks from you, lend it out to somebody that person would pay them interest and then they’ll. Take that interest, take their cut and then give you a share of it. So that’s just pretty much the way it works, so weibo is acting as kind of like a third party here, lending out your stock.
So before we actually jump into the details, guys if you’re new to the blog, we’ll talk about how to earn money, how to save money and how to invest and build wealth. So if that’s something that really interests you go ahead and hit that subscribe button and the notification bell, so you don’t miss out on new content, so um, my understanding of this and which we wouldn’t really explain here, is um how those stocks are actually being used.
So when you say you lend out your stocks, my interpretation is that they take those stocks and use those as collateral for somebody to either borrow money or use them, maybe in a margin account or something I i’m thinking that is used as collateral. That is my interpretation, so if you have, let’s say, have ten thousand dollars of this is some stock in your account and they borrow that those stocks and then they give it to somebody that person can say.
Hey look at this. I have ten thousand dollars in these stocks, so give me money, I can use it. Maybe they can use it to trade or whatever again, that’s just my interpretation. Weibo doesn’t really explain how the stocks are being used here so um. So, let’s look at some of the benefits of uh the stock lending income program for on weibo, so um number one again: it’s extra income for you! So uh! You would immediately begin earning income on any shares that are lent out, which is awesome.
Earnings are accrued on a daily basis, um, but they’re paid monthly, um, so yeah that is fully collectorized, so um. When the lending transactions takes place, our clearing firm will hold the collateral for you to secure the amount um of the loan, so which is awesome. It looks like they’re not messing around here and then there’s no restriction. Um. You can participate in this program, regardless of your account type the amount of equity in your account.
So when you say account types either: if it’s a margin account or it’s a cash account, you can participate um equity in your account. So if you have 10, 15 20, 30, 40 50, you can totally participate. So there’s no restriction, which is great. So there’s no limitation, I like that and then easy and automated. So you don’t really have to do any manual work once you sign up for the program. They’ll just scoop right in take the stocks loan them out and you pay your interest.
So now i’m pretty sure you guys have all the questions that I did ask myself when I just started about it. So how do they calculate the income? So let’s read it right here so um. If we look at the example here, let’s see the income the way it’s calculated is uh number of shares times the price of the stock times the interest and then divide up by 360.. That’s how you get it again number of shares time the price of the stock um times the percentage divided by 360 would give you the the amount of interest that you would get paid, which is awesome, um and then next question here.
Can I sell my stocks if they were loan out, which is a question that I was asking myself too. So, let’s look at the answer. There are no trading restrictions on stocks that are lent out. You can sell your stocks at any time, just as you would if they were, if they weren’t on loan, which is awesome. However, selling of stocks on loan will terminate the loan, which is fine. So let’s say you bought ten thousand dollars worth of um less stock.
Xyz and the price went up to uh, fifteen thousand or twenty thousand, and you had loaned out the stocks and it went up. Let’s say, went up to twenty thousand and you wan na, sell it and take that profit. You can just go into your account and hit sell without having to tell them like hey. I need my stocks back, so I can sell them. You can just sell them and that’s it. But at that point, when you sell it, they’ll terminate your loan and then they’ll pay you, whatever interest, had a proof entirely with using it at the end of the month and you move on, which is awesome so now um.
How can I view my stocks that were loaned and checked my income? So let’s check um number one. It says any stock on loan will be visible in your account on the position page with a loan notification. So they’ll have a designation of loan to which it tells you that stone is that that stock is actually loaned out, which is awesome. The details of your security on loan will be reflected on the related position detail page okay, which is good um.
Additionally, you will be send trick confirmation on lending activities conducted in your account, that’s sweet, so when they do any um um, you know learning activities. You get some sort of confirmation to. Let you know what’s going on um and last but not least, can I receive dividends from stocks uh which were loaned? Okay. Let’s see that’s a very interesting question, because if you are missing out on dividends and that’s an issue, so let’s see uh cash distribution paid on securities on loan in the stock lending income program will be credited to your weibo account in the form of the cash.
In real payment, okay, so you still get payment, but not just like dividends. Uh receipt of cash in real payments may have different tax, uh, taxable uh consequences than receipt of actual dividends from the issuer, so you still get paid. But there is some nuances when it comes to your taxes, so um there, you go guys uh. If just reading at these questions and looking at the benefits of this, I think this is a.
This is a program that’s going to change the way people invest, because if i, if i’m investing for long term, I don’t plan on selling my stocks for two three, four, five, six, seven, eight nine ten years um and the stocks are growing. I’m getting my dividends as I would expect them um and i’m getting growth and then i’m getting extra income for lending out those stocks. I think it’s a fabulous program.
Um, i’m definitely going to give it a shot. I’m going to do it and do a article. A before and after maybe do a one month um and see how I did how much income I made and then i’ll do another article and post it out here for you guys. So if you um want to definitely try this um, i’m going to put a link to uh the weibo app in the description below um. Definitely um just for transparency, i’m an affiliate with weibo.
So if you click that link, you get two stocks, not one. Two stocks free um in your account for just signing up and depositing a hundred dollars to get you started um and so definitely take advantage of that and also check out the stock lending program. Do you think hey, mr v? This is crazy. I’m not sure if my stocks are going to be secure or do you think whoa this is double dipping. Not only am I buying my stocks and getting that growth and getting dividends, but yet i’m making interest on my stocks.
So that’s like triple dipping so growth dividends and and interest wow, i’m loving it. So let me know what you guys think about this program, guys um. I think it’s a fabulous program like I said I haven’t tried it actually, but i’m going to sign up and try it and see how it works. So um yeah again just a reminder: um link to weibo in the description below. If you sign up you get two stacks, not one again guys two um to get you started.
So that’s it for this article uh. If you have any questions, definitely don’t hesitate to reach out and just let me know and also don’t hesitate to drop your comments below and just tell me what you think about this program and, as always, guys stay motivated. You
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