Earn Passive Income: A Guide to Stock Lending

Imagine you have stocks you plan to keep for a long time.

You can lend them out to people who want to sell stocks they don't own yet, hoping the price will go down.

These borrowers pay you a fee.

It's like renting out your stuff.

The lender earns money on the borrowed stocks.

The borrower puts up extra money as a safety net.

If the borrower can't return the shares, they are bought from their margin.

It can be a way to make a little extra money from stocks you already own, but it involves some risks, so it's essential to understand how it works.