Specialness

Definition:

Difference between interest earned on a specific stock loan's collateral and the prevailing interest rate for stock loan collateral. A typical stock has specialness equal to zero. When there is positive specialness, a stock is said to be on special.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Bank for International Settlements (BIS)

An international bank headquartered in Basel, Switzerland, which serves as a forum for monetary cooperation among several European central banks, the Bank of Japan, and the US Federal Reserve System.... Read More

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