Pledge Agreement Investopedia

When it comes to making investments, it`s important to have a clear understanding of the agreements that govern them. One such agreement that you may come across is a pledge agreement, and Investopedia is a great resource to learn more about it.

A pledge agreement is a legal document that is used to secure a loan or investment by pledging assets as collateral. This means that the borrower or issuer of the investment is providing a guarantee that they will repay the loan or honor the investment by using their assets as security.

Investopedia provides a comprehensive guide to pledge agreements, explaining the key provisions and terms that are typically included in such agreements. Some of these provisions include the description of the assets being pledged, the terms of the repayment, the consequences of default, and the rights of the pledgee (the lender or investor).

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