Can anyone explain hypothecation of stock, in the language of a layman.
Satvir Singh (Newly minted CA) (1733 Points)
05 December 2009Can anyone explain hypothecation of stock, in the language of a layman.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 06 December 2009
hypothecation of stock just means keeping stock as a mortgage for a loan. When an asset is kept as a security, it is said as mortgage. when co's stock is mortgaged, its technically called as hypothecation of stock.
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