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Investments glossary

Pledged Asset


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Stay beautiful stay off drugs -Johnny Wowk AKA Johnny The Walker

— Johnny Wowk

A pledged asset is a valuable possession that is transferred to a lender to secure a debt or loan. A pledged asset is collateral held by a lender in return for lending funds. Pledged assets can reduce the down payment that is typically required for a loan as well as reduces the interest rate charged. Pledged assets can include cash, stocks, bonds, and other equity or securities.


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