Any risk/con with this?

Fidelity offering 114.875% interest on some in demand securities….

For me it depends on your window of time for how long you'll hold those securities. At the end of the day, you are going to be lending to shorts whose goal is to tank the value of your holdings. If you're a short term trader, that's like handing the arsonist a match in my opinion. If you're a longer term holder, the shorts will get stomped over time anyway so no big deal there.

Also it changes the tax treatment of divs.

aggies4life said:

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Any risk/con with this?

Fidelity offering 114.875% interest on some in demand securities….

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Limited risk. Biggest issues is in lieu dividends received usually will be classified as not qualifying and you lose your voting rights. You theoretically are exposed to counter party risk of the party lending the shares but they have to post cash collateral. There is also risk if your brokerage fails while shares are lent, they aren't covered by SIPC insurance.

For those that say you are handing short sellers shares to drive the price down, unless you are a large holder, you're unlikely to see an impact on price by a retail investor. If you do own a large chunk, you can actually pull the rug out on the short by forcing them to either find other shares to borrow or they have to buy all the lent shares back in 1 day.