Securities lending is the act of loaning a stock, derivative or other security to an investor or firm. Securities lending requires the borrower to put up col... Securities lending is the act of loaning a stock, derivative or other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security or a letter of credit. When a security is loaned, the title and the ownership are also transferred to the borrower. Stock loan and securities lending the balance.