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Business Glossary


Business Definition for: pledge

transfer or assignment of assets to secure payment of an obligation. Also called a security interest . The borrower assigns an interest in the property to the lender, which becomes a lien on the collateral. If the borrower offers stocks, bonds, or other securities as collateral, the lender generally takes possession or is assigned ownership of the collateral until the loan is paid.

See also margin , Regulation T , hypothecation , perfected lien
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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