Definition of Giver on

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TeachMeFinance.com - explain Giver on




historic definition...

Giver on -- London Stock Exchange term for an operator who has bought stock which he does not wish to pay for and take up and so gives a contango rate to a money lender who will take the stock up for him ; or the term applies to a bear who is short of the stock and wants to borrow the stock for delivery. The effect of this operation is that the buyer continues his bargain (contract) to the next fortnightly settlement. When the stock is much oversold the buyer who lends the stock receives a premium from the seller for postponement of delivery. This premium is called backwardation.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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