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Frauds and Scams > Hypothecation

The following information is about Hypothecation.

Hypothecation Defined

Pledging of securities to a brokerage firm as collateral for margin loans made to purchase securities or to cover short sales.

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Wed Feb 27

  • Hypothecation: Generally, in English and American law, a contract of mortgage or pledge as collateral for a debt in which the subject matter is not delivered into the possession of the pledgee or pawnee.[1] The arrangement is common with modern mortgages - the borrower retains legal ownership of the property but provides the lender with a lien over the property until the debt is paid off.

Wed Jul 4

Wed May 24

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