Securities lending is a common practice in the investment industry where brokerage firms temporarily loan out stocks, bonds, or ETFs from client portfolios to other investors.
When securities are loaned, borrowers provide interest payments and collateral. This arrangement generates additional revenue for the brokerage firm.
Loaning out your shares means surrendering temporary ownership rights. Beyond being unable to sell those particular shares, you lose associated shareholder privileges. You can't participate in company votes with loaned shares because voting rights transfer with ownership. Institutional investors sometimes deliberately borrow shares to affect important votes, or the securities end up held by short-sale purchasers.
Illuminate does not participate in securities lending. Your shares remain fully in your control, with all associated ownership rights intact.
