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hypothecate "

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    • \ hī-ˈpä-thə-ˌkāt 

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    [Verb]  | "hy*poth*e*cate" | \ hī-ˈpä-thə-ˌkāt \


    1: to pledge as security without delivery of title or possession


    Origin: 1681 ;

     Medieval Latin hypothecare to pledge, from Late Latin hypotheca pledge, from Greek hypothēkē, from hypotithenai to put under, deposit as a pledge;

    [Verb]  | "hy*poth*e*cate" | \ hī-ˈpä-thə-ˌkāt \


    1: hypothesize


    Origin: 1906 ;

     Greek hypothēkē suggestion, from hypotithenai;

    [Verb]  | "hypothecate" 


    1: to take as true or as a fact without actual proof;


      * e.g., " ... even before a single vote had been cast, media pundits were hypothecating that the former senator would be the party's nominee "



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     [ "Hypothecate" ]

    1: A word smart people use when they mean hypothecate, and a word stupid people who want to look smart (read: Investment Bankers) use when they mean hypothetical. A classic marker of when you're talking to an idiot who doesn't know it yet; like when people say "pacifically" when they mean "specifically" or "expresso" when they mean "espresso". #Can'tFixStupid

      * e.g.,  ... Investment Banker: “Can you give me some hypothecated numbers?” Investor: "No, you douche, that's not a real thing. Go read a book." 

     [ "De-hypothecation" ]

    1: The reversal of re-hypothecation leveraging. When the loss in value of the underlying assets in the brokerage's account forces the reversal of when a broker pledges hypothecated client owned securities in a margin account to secure brokerage funds. The result being possible disappearance of the commingled funds from the client's account.

      * e.g.,  ... The bank's President could not account for his customers funds because their rehypothecated accounts had experienced de-hypothecation and as a result their value was no longer held by the brokerage. (i.e. MF Global/JPM. City of London and Euro collapse.) 

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