HYPOTHECATION Definition

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HYPOTHECATION, in securities, is the pledging of securities to brokers as collateral for loans made to cover short sales or purchase securities. In banking, it is the pledging of property to secure a loan.

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MONEY MARKET PREFERRED STOCK see AUCTION-RATE PREFERRED STOCK.

FORCED LIQUIDATION VALUE is the value at which the asset or assets are sold as quickly as possible, such as at auction.

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