&gt; This isn&#x27;t entirely true. If you hold securities in a margin account, your broker can lend the shares out to another client of theirs to short. You have no say in the matter.<p>I don&#x27;t think what you said is 100% true either. Charles Schwab brokerage definitely asks before lending out, advertises the interest the borrower is willing to pay on the loaned shares, enrolls the willing lender into Schwab Securities Lending Fully Paid Program, and then buys an insurance policy from Lloyd to cover counter-party default. All of this is done via FedEx letters and hand-written signatures.<p>Sounds like some brokerages don&#x27;t ask and keep the fees and accrued interest to themselves, which is shady. ETFs and mutual funds don&#x27;t have to ask anybody, of course, and usually pass on revenue from securities lending to their customers via lower fees.