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lending at a premium

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Financial Dictionary

lending at a premium

The imposition of an extra fee when securities are lent by one broker to another to cover a customer's short sale. Although lending at a premium is fairly unusual, it may occur when a particular security is difficult to borrow.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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