Hypothecation is the posting of collateral to secure an obligation. Rehypothecation is the reuse of posted collateral.
Hypothecation also refers to the use of revenues from a particular tax for a particular purpose. For example, owners of television sets in Britain are charged a licence fee which is used to fund public broadcasters such as the BBC.
HYPOTHECATION - 1. An archaic term for pledging that did not involve either possession or title transfe... HYPOTHETICATION AGREEMENTS - Are legal documents which define the pledging of collateral. A mortgage de...
Hypothecation: The pledge of property (real estate) and or assets to secure a loan. Hypothecation does not transfer title, however it does provide the right to sell the pledged property in the event of default. Knowledge Bank ...
Hypothecation This refers to the pledging of assets as security for funds borrowed. Bank lending for working capital involves a hypothecation of INVENTORIES and book debts.
Hypothecation. The pledging of securities as collateral, e.g., to secure the debit balance in a margin account. I ...
Hypothecation A brokerage firm's pledging of margin securities at a bank to secure the funds necessary to carry an account's debit balance.
Hypothecation Earmarking taxes for a specific purpose. It may be a clever way to get around public hostility to paying more in TAXATION.
Hypothecation Hypothecation means pledging an asset as collateral for a loan.
Hypothecation In banking, refers to the commitment of property to secure a loan. In securities, refers to the commitment of securities to serve as collateral for margin loans at the broker-dealer firm.
hypothecation: The pledging of margin securities by a brokerage to secure the funds necessary to carry an account's debit balance. Return to Top of Page I ...
Hypothecation agreement: Agreement signed by a margin customer which pledges the securities in the account as collateral for the loan and allows the broker/dealer to use the securities as collateral with the bank supplying the loan money.
hypothecation Banking: pledging property to secure a loan. Hypothecation does not transfer title, but it does transfer the right to sell the hypothecated property in the event of default.
Hypothecation This is the act of pledging a mortgage or lien as collateral against a loan. It refers to the right a lender has to liquidate an asset if necessary to pay a debt. A borrower is said to hypothecate the mortgage. Popular terms ...
Hypothecation Pledging of securities to a brokerage firm as collateral for margin loans made to purchase securities or to cover short sales. See: Collateral; Margin Agreement; Selling Short ...
See: Hypothecation; Initial Margin Requirement; Interest; Margin; Margin Account ...
Pledge and Hypothecation: The securities held with NSDL may be used as collateral to secure loans and other credits by the clients.
Pledging See: Hypothecation Plow back To reinvest earnings in a business rather than pay out them out as dividends. Common practice in high-growth companies.
Rehypothecation Pledging to banks by securities brokers of the amount in customers' margin account as collateral for broker loans, which are used to cover margin loans to customers for margin purchases and selling short.
rehypothecation The pledging of securities in customer margin accounts as collateral for a brokerage's bank loan.,, reimbursement "Paying back for out-of-pocket expenses, such as by an employer or an insurance firm.
The surplus as measured using regulatory accounting principles (RAP), which may allow the nonmarket valuation of assets or liabilities and which may be materially different from economic surplus. Rehypothecation ...
This part of the margin agreement is called the "hypothecation" agreement. Where the limits on the margin agreement investor's borrowing exceed certain levels, the broker automatically sells stock.
A mortgage defines the collateral for a real estate loan or Note and a securities hypothecation agreement permits margin accounts and futures accounts by stating what is being pledged to cover positions, debit balances, or even deficit balances.
See also: All-In Cost, Bond, Creditor, Hypothecation, Interest, Lien, Loan Sharking, Loan Syndication, Mortgage, Policy Loan Demand Note Disclosure Statement Federal Home Loan Banks FHLMC Highly Leveraged Transaction - HLT ...
This may be combined with hypothecation if the proceeds are then used to pay for the costs of treating illness caused by alcohol abuse. Similar taxes may exist on tobacco, pornography, etc., and they may be collectively referred to as "sin taxes".
This process is referred to as rehypothecation, which is the use of customers' collateral to secure their loans. This is legal with customer consent, although some securities and collateral must be kept separately.
Holding company A company that controls, through voting stock, another firm(s). Host security The security to which a warrant is attached. Hypothecation Pledging of securities or other assets as collateral to secure a loan, ...
An economic condition in which prices increase extremely rapidly as a currency loses its value. In essence, inflation is out of control....(Read more) Hypothecation ...
security whose optioned common stock is trading in a middle range, causing the convertible security to trade with the characteristics of both a fixed income security and a common stock instrument. Hyperinflation See: Inflation Hypothecation ...
See also: Banks, Values, Long position, Expense, Convertible security
 
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