What is pledging

Responsive Ad Here

 Uses of pledging in stock market






Stock market is a place we can investing 

and Trading in this place. An example we have

10 lakhs. We can trade and invest using the

Same capital. That is pledging of shares is

An arrangement in which the promoters

Of a company uses their shares as collateral

to fulfill their financial requirements.pledg

ing of shares is common for companies

that have high shares owned by investors.

the borrowers of pledged shares retains

ownership of the assets and continues to

earn intrests and capital gain of those

shares




Promoters can pledge their shares to avoid

trade opportunities due to low cash margin.

they can get a loan after haircut deduction.

the collateral margin received from these

pledged shares can used for equity trading,

futures and option writing 





Responsive Ad Here

Author:

My name is Athulkrishnan. I am focused on following 5 sectors, stock market, cryptocurrency, books, attitude and mindset I am support all of you to how to win trading, how to win in life, power of reading books and how to keep mind happy. follow my website foe more