What is share leasing?

Share leasing is a financial construct where an investor buys shares with borrowed money for an agreed period. During this period, the investor periodically, usually monthly, pays interest on the loan. At the end of the lease period, the shares are sold, and the proceeds are used to repay the loan.

This construct can be attractive to investors who want to profit from price increases without paying the full purchase price upfront, but it also carries the risk that the shares will become less valuable than the borrowed amount.

This term relates to a specific aspect of the financial world and may influence investment strategies and the associated risks.