Hard-to-Borrow List

Hard-to-Borrow List

A list of securities deemed to have an insufficient supply that therefore would be difficult to sell short. Brokerages use the list as part of their due diligence in determining which securities would be the most profitable to sell short. According the SEC, any security found on the hard-to-borrow list is considered in short supply and/or demand. Therefore, an investor may have a hard time finding buyers.
References in periodicals archive ?
Broker-dealers also create "hard-to-borrow" lists, but "the fact that a security is not on a hard-to-borrow list cannot satisfy the 'reasonable grounds' test" of Regulation SHO.