Counterparties borrow shares primarily to support trading and investment strategies such as short selling, hedging, or market-making. For example, a trader who sells a stock short must first borrow the shares to deliver to the buyer. Institutional borrowers, like banks or hedge funds, may also borrow securities to meet settlement obligations, enhance liquidity, or facilitate arbitrage strategies. In all cases, borrowers pay a fee to the lender for the right to use the shares temporarily.
Apex is the principal borrower of your shares. Apex then may lend securities out to other counterparties (e.g. financial institutions, hedge funds) to support short sales, meet settlement needs, or maintain market liquidity.
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