Lending securities

(redirected from Loan Stocks)

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 ?
In southeast Europe, Ukraine, Hungary and Slovenia, fairly high non-performing loan stocks and double-digit ratios in the range of 15 per cent to 25 per cent seem to become more and more a burden for the banking sectors and the economic recovery," Raiffeisen analyst Gunter Deuber said in the study.
Incorporated for the purpose of facilitating Malakoff Group's corporate restructuring, MPower will acquire the power plant operation and maintenance (O&M) business of Malakoff and loan stocks in four independent power producers (IPPs) in which Malakoff has ownership interests ranging from 75 per cent to 100 per cent for MYR 4.
96 billion of newly issued loan stocks of TBP and Segari Energy Ventures Sdn Bhd (SEV) transferred by Malakoff pursuant to the corporate restructuring of Malakoff Group.
The financial projections of MPower indicate that the main cash flow sources for MPower in the first five years of the facility, between 2012 and 2017, will be principal repayments and interest paid on the loan stocks of SEV and TBP.
Companies raise their long-term finance through the issue of shares and loan stocks to members of the public and to institutional investors.
A potential investor will not generally be prepared to take up issues of shares or loan stocks, unless the opportunity exists to liquidate his investments at any time.
The plan entails a refinancing and full redemption of the Senior Sukuk via a MYR 400 million Syndicated Term Loan (STL) and MYR 263 million of Redeemable Convertible Unsecured Loan Stocks.