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URL:  https://boards.fool.com/rehypothecation-and-other-questions-20939418.aspx

Subject:  Rehypothecation and other questions Date:  6/24/2004  4:35 PM
Author:  IIMarcIIAdlerII Number:  1385 of 2244

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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