Social Sciences, asked by guri3414, 1 year ago

What is collateral in short

Answers

Answered by sashank39

Short Sale > Collateral. Borrowing stock requires that the borrow postcollateral of the quantity x underlying share price to the lender in exchange for the shares. ... The lender is required to pay any applicable interest on thecollateral to the borrower.
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Answered by rohitdhaka172

Collateral is an asset that the borrower owns (such as land,building, vehicle,livestock, deposite with banks etc.)and uses this as a guarantee to lender until the loan is repaid.

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