We offer a primer on the market for securities’ lending of securities in the United States. We describe the basic structure of the market, along with descriptions of the relevant market participants. We build sense of the basic economic forces in this decentralized market through a series of examples that successively often levied on each stratification of the respective fees and collateral requirements short sales to build. We also offer an overview of the scientific literature … Read more »

We offer a primer on the market for securities’ lending of securities in the United States. We describe the basic structure of the market, along with descriptions of the relevant market participants. We build sense of the basic economic forces in this decentralized market through a series of examples that successively build on one another stratification of the respective fees and collateral requirements often raised short sales. We also provide an overview of the scientific literature on the relationship between short selling and securities’ prices posted.
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from
Lauren H. Cohen,
Christopher Malloy
12 pages.
Release Date: 22 March 2012. Prod #: 212079-PDF-ENG
Introduction to short selling HBR case solution