Series 65: Hypothecation

Taken from our Series 65 - NASAA Uniform Investment Advisor Law Exam

Definition of the term Hypothecation...

the pledge of margin as collateral for a brokerage loan, where the borrower retains ownership and possession of the collateral but passes to the lender the right to sell it in case of default.

Since you're reading about Series 65: Hypothecation, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 65
Please Enable Javascript
to view this content!