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Securities Lending Program from Poems
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AK_Francis
Supreme |
23-Mar-2008 19:11
Yells: "Happy go lucky, cheers." |
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The question is that the guy who handling your lended share may be less experience than you. Why you need to risk? DIY lah. Cheers. |
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tanglinboy
Elite |
23-Mar-2008 19:03
Yells: "hello!" |
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Just curious... how much is the lending fee?
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ekekeg
Veteran |
23-Mar-2008 11:17
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I agree with Humulus that although we can earn some lending fees, lending out our shares is slapping ourselves in the face. It helps the borrower to short our stocks and in the end our capital invested will diminish as they sell down the stocks. Selling borrowed stocks requires no or little capital, but it makes use of hugh "other people's money" to make money and kill the share lenders. How come? Imagine everytime you buy one lot of share and I give the same lot back to you for more money, it will mean that you are paying out 2 lots money,. and as you buy the same shares as I borrowed and sell down to you, then you are pumping more and more of your money until you get exhausted and the share price diminshed as I sell lower and lower to you. You will need more money than a GIC to buy and buy in geometriacl proportion as I sell to you. So don't lend out your shares to add to other people's woes. |
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tanglinboy
Elite |
21-Mar-2008 18:06
Yells: "hello!" |
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Thank you for your advice!
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Hulumas
Supreme |
21-Mar-2008 15:12
Yells: "INVEST but not TRADE please!" |
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Dear Tanglinboy, In my opinion, it is indirectly you let some one (share borrowers) repeatedly doing shorting traded practice, as such in the end, you end up with getting some shared lending fee (small in amount) and expecting paper capital losses to all your selected share holding that you lend them through your broker, in this case is POEM. This practices no doubt is helpful and meaningful in a sense to create more trading volume with higher fee income to any brokers and SGX on any share lenders expenses!!! I choose not to take this offer! Any one as an investor and having some holding shares on hand, I am sure all concern about capital preservation of their stock portfolio holding or getting paper capital gain by time goes by, but not expecting small fraction of lending fee and uncomparable huge potential paper capital losses to their underlying stock portfolio!!! |
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tanglinboy
Elite |
21-Mar-2008 09:39
Yells: "hello!" |
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I got this email from Poems. Anyone know whether this is a good thing to sign up for? Don't know what to do with your stocks right now? Are you currently holding on to your stocks and wondering what you can do with them while waiting to sell at the right price in this market slump? Our BRAND NEW Securities Lending Program might be what you need to make your securities work harder for you. With this new program, you could potentially increase the yield of your portfolio at relatively low risk. All you need to do is to sign a standing agreement and you will be entitled to 50% of the returns generated on lending fee whenever your securities are loaned out.
Please click HERE to find out more about securities lending or visit our FAQ site. |
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