IIA
IIA-CFSA · Question #201
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 correct answer is B. To facilitate short sale. See the full explanation below for the reasoning.
Question
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:
Options
- ATo circulate the issued capital
- BTo facilitate short sale
- CTo facilitate over the counter trade
- DTo fasten secondary market trading
How the community answered
(52 responses)- A4% (2)
- B71% (37)
- C8% (4)
- D17% (9)
Community Discussion
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