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A stock loan fee is a cost an investor pays to borrow stock from their brokerage or another investor. This fee also enables investors to make money from lending shares of stock that are otherwise just sitting in their portfolios. Borrowers can pay this fee to temporarily have stocks that they can then use for short selling or to gain voting rights. Stock loan fees may not be on the radar for much of the general public, but they are a key component within the overall investing industry. Understanding stock loan fees can help individual investors potentially increase their investment returns. Definition and Examples of Stock Loan Fees Stock loan fees are often used to facilitate short selling. With short selling, an investor bets that the price of a stock will decline. To do so, they first need to borrow shares and pay a stock loan fee to the lender. The short seller then sells these borrowed shares to eventually buy the shares back at a lower price. The short seller then returns t...

Blockchain is the technology behind Bitcoin and other cryptocurrencies. But there’s also a lot of interest in using blockchain as an application for other industries—especially financial, luxury goods, and any other industry where authentication is very important. A blockchain allows multiple parties to collaborate without having to simply trust each other. With blockchain, trust is baked into the technology. That is because no single entity controls the information involved in blockchain transactions. Many companies, including giant ones like IBM and Walmart, are looking at how to offer blockchain-related services or implement this new technology within their own businesses. Still, other blockchain-associated companies are being formed as startups. All of that means there are plenty of opportunities for investors to buy stock in a company that may benefit from increased use of this technology. Some of them are penny stocks, which are not listed on a major exchange (and so are s...