scorecardresearchPledging of shares: What is it and why do promoters do it?

Pledging of shares: What is it and why do promoters do it?

Updated: 09 Aug 2022, 02:37 PM IST
TL;DR.
Although pledging shares are a popular way for enterprises to generate financing, corporations see this tactic as a last resort for getting funding from lenders. Go through the article as we explain the reason behind this happening.
The promoters of a firm can get loans to cover their personal or professional needs by pledging their shares as collateral to lenders.

The promoters of a firm can get loans to cover their personal or professional needs by pledging their shares as collateral to lenders.