Securities loan - Financial definition
Financial acronyms
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Concise definition of the term securities loan
Term designating a financial transaction in which the lender (the owner of the securities) temporarily transfers ownership of securities to the borrower, in exchange for compensation. This transfer is generally secured by collateral which can take on the form of cash, other securities or another form of financial commitment such as a letter of credit.
Comprehensive definition of the term securities loan
A securities loan can be negotiated and concluded either directly between the lender and the borrower, or through a third party acting as a lending agent who facilitates the transaction.