I’m quite new to investing so wonder if anyone could shed light on what a stock lending is in terms of a holding in the company announcement today?
Thanks in advance.
Here is a link to an explanation on Investopedia (no connection with Stocko so far as I am aware).
https://www.investopedia.com/terms/s/securitieslending.asp
Basically, the holder of the stock lends it to a third party for a fee (akin to a rate of interest) on the condition that the borrower agrees to return it as and when agreed under the terms of the loan. Typically the borrower then sells the stock (goes “short”) in the hope they can buy it back cheaper if the price falls and will make a profit if the value of the fall in price is bigger than the fee to the lender.
Gus.
