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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Hypothecation Agreement

Definition:

Really, a margin agreement. The borrower pledges the securities to the lender as collateral, but the securities stay in the borrower's account until the borrower defaults. If that happens, the lender can swoop in and grab the collateral.

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