Share lending involves institutions lending out investors' shares of stock to other investors in order to generate more revenue. The lenders are often pension funds, mutual funds, sovereign wealth funds, and exchange-traded fund (ETF) providers, since these types of firms tend to be long-term holders of equities.
What are the benefits of securities lending? For shareholders, stock lending offers a relatively low-risk way to earn extra returns on the stocks you already own. You maintain ownership of your stocks the whole time. If loaned stocks go up in value, those returns are still yours.
Write the contract in six steps Start with a contract template. Open with the basic information. Describe in detail what you have agreed to. Include a description of how the contract will be ended. Write into the contract which laws apply and how disputes will be resolved. Include space for signatures.
Legally binding contracts can be done both in writing or orally. However, when it comes to business transactions, it's best to have the majority of your contracts in writing. There is no law requiring contracts to be written by a lawyer. There are no laws that indicate any specific form or font they should be in.