Retail investors may opt to loan some of the shares to their brokers:

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In theory, one of the risks is that the broker and the collateral may have some issue, leaving the retail investor with a financial loss.

In practice, has the loan of securities from a retail investor to a well-established US broker ever resulted in a financial loss to the retail investor?

  • $\begingroup$ Welcome to Economics:SE. Thank you for your question; please consider revising it to be more in line with our community expectations. Like many other stacks, we expect questions to provide evidence of prior research. That helps us to understand the question, and avoids our repeating work you've already done. Our help center, and other stacks provide additional resources to assist with revisions. $\endgroup$
    – 1muflon1
    Apr 4, 2021 at 20:28
  • $\begingroup$ I'm still interested in this question, in case anyone has an answer. $\endgroup$ Jan 20, 2022 at 4:01


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