Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent that the lender will buy them back at a future date. The borrower is required to return the securities to the lender, either on demand or at a specified time. A major reason for securities lending is:

Question

Quizplus · Accepted Answer

Securities lending is primarily used to facilitate short selling, where the borrower sells the borrowed securities with the intention of buying them back at a lower price.

Securities Lending Refers to the Practice of Temporarily Transferring Securities