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Definitions from the Web

Hypothecation of Stock

Definition: Hypothecation of stock refers to the practice of using stock shares as collateral for a loan without transferring ownership of the shares. This allows borrowers to obtain funds while still retaining ownership and the potential for future gains from the stock.

Examples:

Noun:

1. The hypothecation of stock is a common financing technique used by investors to secure loans.
2. She used her stock portfolio as hypothecation to secure a loan for her business.

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