Definitions for "Stock Lending"
Lending of shares by long term holders, such as institutions, 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 derivatives strategy.
Borrowing securities to deliver when a dealer or investor has sold 'short'. The lender receives payment until the dealer 'covers' its short by purchasing the security and delivering it to the lender. Also, the activity of arranging such loans between third parties.
A process by which stock is released to a third party for a fixed or an open period, in return for collateral and a fee for doing so. Normally a short-term transaction.
An activity whereby securities are lent to the financial market for a fee. This activity may be conducted to alleviate temporary market shortages of specific lines of stock.
The process whereby stocks and gilts owned by one party can be loaned to another. Typically, this process is transacted via a money broker and requires a small fee.