“Not feeling entirely confident in banks, and as a diversification from holding all my shares there, I am thinking of buying some shares by Direct Stock  Purchase, although this avenue seems to be less common than before. I feel that the shares would be more secure in that they would be unlikely to be lent out, as is rumoured to happen with some banks. In the event of a bank failure, I would expect my best interests as a  shareholder to be better preserved in sorting matters out directly with the relevant company. Admittedly, buying or selling stock would take more time.

Have you any advice on the matter?”

David Fuller's view

I hope you do not know something about developed country bank risks in today’s environment of which I may be woefully unaware!

Some subscribers will know considerably more about this than I do, so please do not hesitate to comment in the spirit of Empowerment Through Knowledge.  Meanwhile, as I understand it, shares may be lent out for a small fee to those who wish to short them.  I assume your question is mainly about bank security.  I am far less worried about this in developed economies today, than I was in 2008/9.  However, you could have your shares registered in your name and delivered to your home, although that could easily be more hassle than it is worth.  If you are satisfied with your bank, why not ask them about the security of your shares which they hold?