SIE Exam Practice Question 721

Question: 721

Which of the following terms refers to a broker using securities in his or her possession, but owned by a customer, as collateral to raise a loan to cover a short position?

Correct Answer: C

Explanation:

Rehypothecation refers to a broker using securities in his or her possession, but owned by a customer, as collateral to raise a loan to cover a short position.

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