We offer a primer on the market for securities' lending of equities in the United States. We describe the fundamental market structure, along with descriptions of the applicable market participants.
We build intuition for the fundamental economic forces in this decentralized marketplace by means of a number of examples that sequentially build on each other layering on the particular fees and security requirements usually levied in short selling transactions. We also provide a survey of the academic literature to date on the connection between short selling and securities' costs.
PUBLICATION DATE: March 22, 2012 PRODUCT #: 212079-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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