82,387
edits
Stock loan: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{a|glossary|}}A strange beast. Actually a type of financing transaction, though it is clothed it the language of [[buy]] and [[sell]]. | {{a|glossary|}}A strange beast. Actually a type of financing transaction, though it is clothed it the language of [[buy]] and [[sell]]. | ||
{{securities lending capsule}} | |||
===Why?=== | ===Why?=== | ||
Start out with what it is ''for''. Let’s say a well-meaning [[hedge fund]] wants to bet against the price of a security. It does that by “[[short selling]]”. The key economic feature of a short sale is that you sell a security you don’t own in the first place. If you own it and sell it — well, that’s just a sale. | Start out with what it is ''for''. Let’s say a well-meaning [[hedge fund]] wants to bet against the price of a security. It does that by “[[short selling]]”. The key economic feature of a short sale is that you sell a security you don’t own in the first place. If you own it and sell it — well, that’s just a sale. | ||
| Line 16: | Line 18: | ||
According to Simon Firth on derivatives, [[Borrowed money|no]]. Nor does a [[repo]]. | According to Simon Firth on derivatives, [[Borrowed money|no]]. Nor does a [[repo]]. | ||
{{ | {{sa}} | ||
*[[Stock lending]] | *[[Stock lending]] | ||
*[[Short sale]] | *[[Short sale]] | ||
{{ref}} | |||