Pledging
Market basicsOffering shares you own as collateral to receive trading margin against them.
In plain terms
Borrowing against your portfolio. You keep the shares; the broker gets a claim on them.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Read the full lesson →
Promoter pledging
Fundamental analysisBorrowing by promoters against their own shareholding in the company.
In plain terms
A falling price triggers margin calls, forcing lenders to dump shares — which drives price lower still.
Default
Fundamental analysisFailure to meet a debt obligation when it falls due.
In plain terms
Rating outlook, interest coverage and promoter pledging warn well in advance.