To pledge or transfer to another a note, goods, or other collateral that has already been pledged; for example, a BROKER may pledge SECURITIES pledged to him by a customer (e. g. , under a MARGIN ACCOUNT) to finance his borrowings from a bank.

The pledging of securities in customer margin accounts as collateral for a brokerage's bank loan. see also hypothecation.

Pledging to banks by securities brokers of the amount in customers' margin account as collateral for broker loans, which are used to cover margin loans to customers for margin purchases and selling short.