Collateral for hypothecated loan is the existing portfolio of eligible stocks and bonds. This includes the stocks and bonds purchased in the margin account. Know How Margin Accounts Work Obtain and read the hypothecation agreement. Hypothecation for common stock refers to a broker-dealer lending money to a customer’s margin account. Lending requires collateral. Bonds can …
Buy Stocks on Margin: Understand and Use Available Assets to Hypothecate LoansRead More