TeachMeFinance.com - explain Giver on
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.
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