Will my cost basis and holding period be preserved?
In most cases, cost basis is not transferred automatically along with the assets.
After the transfer is completed, you will see an option to update the cost basis manually from the transaction history section in the app.
Your holding period continues from the original date of acquisition and does not reset due to the transfer.
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What is cost basis?
The cost basis is the original value of your investment—what you paid to buy the stock, including commissions. It's the starting point for calculating your profit or loss for tax purposes. When you sell shares, under the First-In, First-Out (FIFO) ...
How will securities be chosen for loans?
All enrolled accounts holding the security will be identified and put into a lottery process. Accounts will then be selected on a random basis.
How will SIPC coverage be impacted?
SIPC will not cover the securities position on loan. However, the loan will be backed by 100% collateral held at a third-party bank.
Where will the collateral be held?
To secure the loan, cash and non-cash collateral (as per the Securities Exchange Act of 1934 and related SEC and FINRA guidance) will be held for your benefit at a custodial bank that is independent of our clearing partner, DriveWealth. The value of ...
How will dividends be handled within the Fully Paid Lending Income Program?
Substitute payments will be provided in lieu of dividends and are taxed differently than dividends. Consult your tax professional for further details.