What is Hypothecation?
What is hypothecation?
It's an interesting concept that we often encounter in the world of finance.
Hypothecation is a legal and financial term, that refers to the practice of pledging an asset as collateral for a loan without actually transferring ownership of the asset. In other words, it's a way for borrowers to secure a loan, by using their assets as a guarantee, while still retaining ownership and possession of those assets.
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