Glossary · market terms in plain English

Borrow and recall

The borrow is the loan of shares a short seller sells — arranged by the broker, ultimately out of other clients’ accounts — and its fee is a market price that can reprice overnight. A recall is the lender demanding those shares back: the borrow ends on the lender’s schedule, not the short’s, and the shares must be bought back and returned. Taught in: Short selling →