Lending securities

Lending securities

Securities borrowed from a broker's inventory, from another customer's margin account, or from another broker, when a customer is required to deliver on a short sale.

Lending Securities

In short selling, the act or practice of placing one's own securities into the trust of another person or institution with the expectation that identical securities will be returned within a certain number of days (often three). The practice of lending securities is crucial to the borrower's hedging of risk: if the borrower were unable to obtain such a security, he/she would be unable to make a profit on a decline in the security's value. Securities are often lent by a broker and placed in a margin account. See also: Hedge fund.
References in periodicals archive ?
25, 2011 (CENS) -- In response to the short selling of Taiwanese stocks by foreign investors with borrowed securities, the Financial Supervisory Commission (FSC) has resorted to five major measures, including reminding insurance firms to evaluate the returns and cost for lending securities to insurance firms and reviewing the legality of loan-oriented securities borrowing.
Through securities lending programs, institutional investors (lenders) generate additional revenue by temporarily lending securities to broker- dealers (borrowers) to provide liquidity to the markets, facilitate trade settlements, manage risk or execute other trading strategies.
This reflects the essential character of a special collateral RP as a device for borrowing and lending securities.
The central bank then put some muscle behind its words by pushing up overnight interest rates by lending securities to the banking system.
Lending securities plays an important role in the global financial system, and the size of the market is estimated between $1.
Through securities lending programs, institutional investors (lenders) generate additional revenue by temporarily lending securities, on a fully collateralized basis, to broker-dealers (borrowers) to provide liquidity to the markets, facilitate trade settlements, manage risk or execute other trading strategies.
mortgage and lending securities community, announced that the amalgamation of the Company with The First American Corporation has closed, effective today.
mortgage and lending securities community, announced that debentureholders approved an amendment to the Trust Indenture governing their debentures and approving the amalgamation of the Company with The First American Corporation, at a special meeting held today in Toronto.
Securities lending involves transactions where lending institutions, including agent banks, pension funds, mutual funds and insurance companies earn incremental income on their portfolios by lending securities to borrowing institutions, typically broker/dealers, facilitating proprietary and customer short positions in the market.
mortgage and lending securities community, today announced it will hold its Special Meeting of Debentureholders on Tuesday, September 7, 2004 at 10:00 a.
mortgage and lending securities community, today announced that the special meetings of debentureholders and shareholders will be held on August 16 to approve the company's acquisition offer by The First American Corporation , the largest data provider in the United States of America.
mortgage and lending securities community, has signed a definitive transaction agreement to be acquired by The First American Corporation , the largest data provider in the United States of America.