Credit

The transfer of goods or securities generally granted by banks and savings banks, whereby the receiving party undertakes to return the amount received plus interest to the creditor within an agreed time frame. The party that grants the credit is referred to as the lender or creditor. The receiving party is called the borrower or debtor. Stock market brokers commonly grant credit for the purchase of shares. They also lend securities for sale and subsequent repurchase. Investors are looking for the share price to rise in the first case and fall in the second case.