| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
Commingling
Definition 1.
In the context of securities, this involves mixing customer-owned securities with brokerage firm-owned securities. This process is referred to as rehypothecation, which is the use of customers' collateral to secure their loans. This is legal with customer consent, although some securities and collateral must be kept separately.
|
Definition 2.
1. In the context of securities: the mixing of customer-owned securities with brokerage-owned securities. 2. In the context of trust banking: the pooling of individual customer accounts into a fund, a share of which each contributing customer owns. This works similarly to a mutual fund.
|
Definition 3.
The mixing of customer account securities with those in a bank or brokerage's own accounts; usually illegal.
|
|
|