Definition of Hypothecation

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TeachMeFinance.com - explain Hypothecation




historic definition...

Hypothecation -- The pledging of securities or other property as collateral for loans. When securities are pledged for a loan the title to them is surrendered to the bank or other lender with which or whom they are pledged. On the London Stock Exchange stock pledged as collateral is said to be pawned.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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