Have you ever imagined a way to make money on the stock exchange without making much effort? Perhaps a possibility for you is the rental of shares.
Stock leasing consists of making the stock you own available for rent. The shares remain yours, but someone else will enjoy that action.
Find out below some advantages of this type of operation and how to get the best out of it when renting your shares.
Who can rent?
Anyone who has shares on the stock exchange can make them available for rent. You continue to gain in appreciation, in dividends and you will still have the benefit of rent.
However, stock leasing is best for people who invest in stocks and do not want to profit from volatility. People who have a more conservative profile, who seek to invest for the long term.
How much can you earn from stock leasing?
The amounts paid for share rentals vary according to the profile of each share. The best known and least volatile stocks tend to receive less for rent.
On the other hand, stocks with the characteristic of higher rises that vary more, tend to pay more.
This is because actions that vary less are more secure. Through B3’s own website, you can find out the rental price of a share. This is a pre-defined and disclosed price. Through the B3 website you can find out the minimum and maximum amount already paid for the action.
Let’s take, for example, an action by magazine Luiza (MGLU3). The minimum amount someone has ever paid was 0.25%. The maximum amount paid for this action was 7.54%.
Given these values, we have a weighted average that is equivalent to 0.92% of the donor’s remuneration rate. It is worth mentioning that 0.92% is annual. So, to convert to month, we need to divide by 12 times. Thus, the total per month 0.07% on top of its total value of leased shares. For example, if you have R $ 10,000 in shares, it will be 0.07% over R $ 10,000.
It is important to note that the rental price is about the value of the shares when leased. Your shares are worth R $ 10,000 and no longer have that value in the end it doesn’t matter. The rent will be charged on the R $ 10,000. Regardless of whether the stock rose or fell.
How to rent your shares
To rent your shares you need to contact your broker. If you have a digital broker, you can already make this request by chat.
You just have to express your interest in renting your shares. Then they will ask how long you want to make it available and for what amount you want to rent.
As there is a minimum and a maximum already paid, you must use this value as a parameter. Realize that this is a negotiation brokered by the broker that you will do with the borrower. You define the amount you want to rent your share and it is up to the interested party to accept or not your proposal.
There is no value for making your shares available for rent. The more money you have in stocks, the more money you can make. As long as you can rent the full price, of course.
Contracts are generally very short at around a month in length. That’s because whoever leases has the objective of selling it for a higher price. The borrower later reacquires this action to return it. Profiting thus by the difference in value.
So, the borrower risks this action instead of falling, being valued. In this case, he needs to pay the difference out of his own pocket. That is why the leasing of a share is safe for the donor and not for the borrower.
This is the risk of stock market volatility. If you are renting your shares there is no risk. In fact, this is yet another way to generate extra income through your actions.
Is stock leasing a good deal?
If you are looking for the long term, you don’t want to take a chance on going up and down the stock market. Renting shares can be a way to increase your earnings. After all, without any effort, your actions will continue to pay off.
Advantages of stock leasing:
- You receive a percentage in exchange for the share lease
- The entire process is intermediated by B3. So it is fully guaranteed by the Exchange
- The value of its shares does not change therefore, it follows the same market dynamics
- You still receive dividends for carrying out this operation
- If action values, you win the same way. What does not happen with the policyholder
Advantages for the policyholder
- It aims at the short term and manages to profit from the sale of the shares without having them
- It manages to gain from the short-term oscillations of the stock market.
Given these advantages, we can see that these are convenient gains for both sides. However, while the donor is not at risk, the income is not so attractive.
The borrower takes risks proportional to the opportunities for gain. If the borrower is successful, his profitability can be quite high.
In any case, stock leasing is a great opportunity. If you are aiming for dividends, there is no reason not to rent.