stock lending

stock lending
The outright transfer of securities against a promise to re-transfer subsequently equivalent securities; the borrower transfers to the lender other securities or cash by way of collateral. Typically, the loan will be made to a market maker or other dealer in securities to enable it to settle a bargain it has made to sell securities.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • stock lending agreement — An agreement setting out the terms in which stock is lent to a borrower in a stock lending arrangement. Related links Model Code Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Stock Lending —    Lending of shares by long term holders such as pension funds or insurance companies when shares are in short supply. Often an investment house will not actually take delivery of the stock but will use it as an underlying instrument in a… …   Financial and business terms

  • stock borrowing and lending intermediaries — Stock Exchange member firms who act as brokers identifying pools of stock which are available for lending to other market participants by their beneficial owners. They also act as money brokers. Dresdner Kleinwort Wasserstein financial glossary …   Financial and business terms

  • lending — An example of a carry (See carrying) which takes place on the LME, this is the sale of near dated futures and purchases of longer dated futures. On other markets such an intramarket spread trade it is known as selling the spread . Dresdner… …   Financial and business terms

  • Stock market — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • stock loan — noun a) A loan structure, often nonrecourse, using free trading stock or in some cases restricted stock as collateral. b) The loan of securities by one broker to another, such as to cover a customer short sale. More commonly known as securities… …   Wiktionary

  • Securities lending — In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a Securities Lending Agreement , which, under U.S. law, requires that the borrower provides the …   Wikipedia

  • International Securities Lending Association — The International Securities Lending Association ( ISLA ) is an independent trade association established in 1989 to represent the interests of the securities lending industry. Headquartered in the United Kingdom, the primary goal of ISLA is… …   Wikipedia

  • securities lending — also stock lending The outright transfer of securities against a promise to re transfer subsequently equivalent securities; the borrower transfers to the lender other securities or cash by way of collateral. Typically, the loan will be made to a… …   Law dictionary

  • margin lending — England, Wales See margin loan margin stock lending. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

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