Stock Lending Income Program

What is the Stock Lending Income Progam?

Our Stock Lending Income Program allows to you earn additional income by lending fully-paid shares of stock held in your account. Here’s how it works:

1. Loan Shares: Apex, our clearing firm, identifies which stocks in your account to loan based on market demand.
2. Earn Interest: While your shares are on loan, you'll earn interest that accrues daily and is credited to your account monthly. The interest rate is variable and determined by market conditions, often fluctuating daily.

How is my income calculated?

Your daily interest earned is calculated using the following formula:

Interest Earned = Loaned Share Qty. x Mkt. Price of Stock x (Annualized Int. Rate ÷ 360) x 15%

Can I sell my stocks while they are on loan?

You can sell your loaned stocks at any time without restrictions. However, selling the stocks will automatically terminate the loan.

How do I check my loaned securities and interest income?

App:

1. Navigate to Menu.
2. Select Settings ➝ Account Management ➝ Stock Lending Income Program ➝ Daily Records.

Your monthly statement includes all related loan activity. Trade confirmations are also issued for any lending activity

Will I receive dividends from loaned stocks?

If your securities are enrolled in the Stock Lending Income Program, any cash distributions are credited to your Webull account as "cash-in-lieu" payments. If only a portion of your position is loaned out, the payment will be split into two entries in your account's fund records. These payments may also have different tax implications than dividends paid directly by the issuer.

How do I exit the Stock Lending Income Program?

App:

1. Navigate to Menu.
2. Select Settings ➝ Account Management ➝ Stock Lending Income Program ➝ Exit Program.

Web:

1. Click My Account (top right).
2. Select Manage My Account ➝ View Details (right of Loaned Securities).
3. Click Exit Program.

Please note, the app will continue to display loaned shares until the exit request is fully processed and the shares are returned, typically within 1–2 business days.

What do I need to know about my loaned securities?

Loans are made from the customer to the broker. The broker posts a cash-equivalent amount as collateral for the shares loaned. You can view the collateral amount in your FPSL (Fully Paid Securities Lending) Details page.

• Shares loaned under FPSL are not covered by SIPC. However, the collateral held can be used to ensure client protection for the value of the loaned shares.
• Shares enrolled in FPSL during a reverse split will be credited to the account as cash-in-lieu (CIL).