Question

"Hypothecation" in the context of Rule 22 of KCS Rules means:

• A. Transferring ownership of shares to the lender as collateral
• B. Selling shares to recover a loan amount
• C. Pledging shares as security for a loan without transferring ownership
• D. Using shares as a guarantee for a loan with temporary ownership transfer

Answer 1

Answer:

C. Pledging shares as security for a loan without transferring ownership

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