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| Subject: Rehypothecation and other questions | Date: 6/24/2004 4:35 PM | |
| Author: IIMarcIIAdlerII | Number: 1385 of 2244 | |
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When a brokerage, in order to make a loan to a customer, borrows money and puts up money or stocks from the customer's own collateral as collateral for the loan, this is called rehypothecation, I think. Is this correct? If it is, why are the terms "hypothecation" and "rehypothecation" so rarely used? Would it be correct to assume that the term "pledge" is a more common way of saying the same thing? |
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