The term, in the international market, usually refers to the short term financing by banking institutions to brokers for maintaining the margin account.
The owner of a margin account from which the shares were lent will have agreed in advance to relinquish voting rights to shares during the period of any short sale.
Clients hold a margin account with the exchange, and every day the swings in the value of their positions is added to or deducted from their margin account.
