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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

hypothecation  

Definition 1.

The pledging of securities or other assets as collateral to secure a loan, such as a debit balance in a margin account.
 

Definition 2.

When a person pledges a mortgage as collateral for a loan. It also refers to the right that a banker has to liquidate goods if you fail to service a loan.
 

Definition 3.

Pledging of securities or other assets as collateral to secure a loan, such as a debit balance in a margin account. (See debit balance, margin)
 
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