Hypothecation primarily protects:
A) brokers.
B) investors.
C) stock exchanges.
D) the Bank of Canada.
E) the OSC.

Name: Hypothecation primarily protects: A) brokers. B) investors. C) stock exchanges. D) the Bank of Canada. E) the OSC.
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Question

Quizplus · Accepted Answer

Hypothecation primarily protects brokers by allowing them to use the securities owned by their clients as collateral to secure loans, typically for margin accounts. This process helps brokers manage the risk of lending money to clients for purchasing securities.

Hypothecation Primarily Protects