Saudi Arabia leads in stock lending as short selling grows
September 25, 2024--Short selling requires stock lending
Saudi Arabia is the Middle East's most active market for stock lending- an important part of the process of short selling-and demand from borrowers is likely to increase as more sophisticated investors start trading, new research suggests. |
In stock lending, an entity-usually a broker or financial institution-pays a fee to borrow shares in a company from an investor in that company. The borrower uses the shares for short selling or other hedging strategies. |