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Rehypothecation

   Also found in: Legal, Wikipedia 0.04 sec.
Rehypothecation
When a broker pledges hypothecated client owned securities in a margin account to secure a bank loan.

Notes:
This is also known as a margin loan.


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.

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