In
finance,
securities lending or
stock lending refers to the lending of
securities by one party to another. The terms of the loan will be governed by a "Securities Lending Agreement", which requires that the borrower provides the lender with
collateral, in the form of cash or non-cash securities, of value equal to or greater than the loaned securities plus agree upon
margin. Non-cash refers to the subset of collateral that is not pure cash, including equities, government bonds, convertible bonds, corporate bonds, and other products. The agreement is a contract enforceable under relevant law, which is often specified in the agreement.