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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Hypothecate

Definition:

Let's say you want to start investing but don't have the cash for it.

Your broker lets you borrow money to invest—as long as you have collateral. Hypothecate means that the lender has an interest in the stocks or securities you've purchased with the borrowed money but doesn't actually take your collateral.