We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Borrow

Categories: Stocks, Derivatives

When you borrow, someone fronts you something (cash, a book, a good shirt for your date on Friday night). "The borrow" is the cost of borrowing shares if an investor has to borrow the shares from the brokerage (it's called short selling a stock). The borrow is usually expensive because of the high interest rates charged. 

Find other enlightening terms in Shmoop Finance Genius Bar(f)