Yeah, read that thread, it's part of their margin agreementIn other words, the stock lending option is irrelevant, because the act of using the margin loan permits them to lend out the collateral shares. If I wasn't using the margin loan and instead just holding SGOV, I would expect to have received 100% as "CDIV", correct?When you have a margin loan they can lend out your shares (it's called rehypothecation) with share lending turned off, and you get PIL instead of dividends. viewtopic.php?p=8253157#p8253157
And does it invalidate the gov't securities state tax exemption?
Edit: I know we're talking peanuts here; I mostly want to make sure I'm fully understanding what's going on, since I've only really gotten into optimizing MM/cash-like holdings for taxes in the last year, and there will be times when I'm dealing with much larger balances than this microcosm.
It would have been ordinary dividends from government obligations (97.xx% iirc),sgov never issues QDIV
I don't know whether it kills state tax exemption. I would Google around, I didn't find anything in the 60 sec I spend looking
Statistics: Posted by nalor511 — Sun Feb 16, 2025 8:30 pm
