re: Fully Paid Shares Lending Program - Etrade

Just a heads up I did find this out:

Review on program from someone

quote:

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Dividends are paid “cash in lieu” – Under current tax law, qualified dividends receive preferential treatment. In other words, the income is taxed at lower rates. If a dividend is paid for any shares that are lent out, the dividend received will be credited to the account as “cash in lieu” and do not qualify for preferential treatment. This means that all dividends could be taxed at ordinary income tax rates.

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So if you have dividend heavy stocks, this is a big deal potentially.