Rehypothecation
A broker or prime broker reusing assets a client pledged as collateral — for example, lending out shares held in margin accounts. It is how many of the shares available for short selling are sourced.
Appears in these guides
Related terms
Related lessons
Naked Short Selling
Ordinary short selling borrows shares before selling them. Naked short selling skips that step — selling shares that were never borrowed or arranged for. It is tightly regulated in the US, it is one way 'fails to deliver' can arise, and it sits at the centre of one of the most heated debates in modern markets. Learn what it is, what Regulation SHO actually requires, the market-maker exemption, and how to read the controversy without the myths.
Reading Short-Selling Data: Short Interest, Short Volume & Cost to Borrow
Three numbers get quoted endlessly to judge how heavily a stock is shorted — short interest, short volume, and cost to borrow — and two of them are constantly misread. Learn what each actually measures, why short volume is NOT short interest, why short interest can legitimately exceed 100% of the float, and why the borrow fee is often the most honest real-time signal of the three.
Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.