Rehypothecation

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Dictionary Says

Definition of 'Rehypothecation'

When a broker pledges hypothecated client owned securities in a margin account to secure a bank loan.
Investopedia Says

Investopedia explains 'Rehypothecation'

This is also known as a margin loan.

Related Definitions

  • Hypothecation

    When a person pledges a mortgage as collateral for a loan, it refers to the right that a banker has to liquidate goods if you fail to service a loan. The term also applies to securities ...
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  • Pledged Asset

    An asset that is transferred to a lender for the purpose of securing debt. The lender of the debt maintains possession of the pledged asset, but does not have ownership unless default ...
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  • Broker

    1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. 2. The role of a firm when it acts as an agent for a customer and ...
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