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What is Investment Lending/Securities Lending?

Securities Lending is a kind of investment activity that allows whole-share owners of securities to earn extra income.

The owner of the whole-share (AKA the lender) loans their securities to a financial institution, such as a brokerage firm, a bank or hedge fund. This makes the financial institution the borrower.

The borrower pays a loan fee to the lender in exchange for the securities. The fee varies based on market demand.

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