securities lending

Definition

A loan of a security from one broker/dealer to another, who must eventually return the same security as repayment. The loan is often collateralized. Securities lending allows a broker-dealer in possession of a particular security to earn enhanced returns on the security through finance charges.

Use securities lending in a sentence

Mentioned in these terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Securities Law Enforcement Remedies Act of 1990 securities loan