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Finance Dictionary and Glossary of Investment Terms
securities lending
Definition 1.
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.
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Definition 2.
When a brokerage lends securities owned by its clients to short sellers.
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