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If account is cash-only (no margin), then broker cannot rehypothecate. True?


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If account is cash-only (no margin), then broker cannot rehypothecate. True?

  #1 (permalink)
maxplanck
Chicago IL
 
Posts: 19 since Sep 2011
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If account is cash-only (no margin), then broker cannot rehypothecate. True?

Can clearing rehypothecate?

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  #3 (permalink)
maxplanck
Chicago IL
 
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Received an affirmative from Bob Morse over on ET

Forums - Best capitalized brokers which does not hypothecate?

"In a margin account, even if you securities are paid for in full, they can lend them out. In a cash account, they can not."

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 bluemele 
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maxplanck View Post
Received an affirmative from Bob Morse over on ET

Forums - Best capitalized brokers which does not hypothecate?

"In a margin account, even if you securities are paid for in full, they can lend them out. In a cash account, they can not."

Interesting....

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Last Updated on December 11, 2011


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