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if you have a spare room in your house you could rent that room out to a lodger for a fee for a year now believe it or not you could do similar things with stocks or shares my name is kieran king and today were going to be talking about stock lending agreements how they are used how they work how people make and lose money from them lets dive in now a stock lending agreement is exactly what it says it is an agreement between two parties where one is a lender of the stock and one is a borrower of the stock the party that borrowed the stock has to give the stock back at a certain point of time however before that time comes the borrower can play with that stock and attempt to make money off of it the typical method used is known as short selling and were going to get into it a bit later anyways lets look at an example imagine three parties jack alice and a broker that connects the two jack owns one share of apple stock worth three hundred dollars thats the market price at the moment
