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The difference between pledge and pledge
The difference between pledge and pledge is as follows:

1, with different targets: the target of equity pledge is equity, while the target of equity pledge is stock;

2. The rights involved are different: equity pledge means that shareholders transfer their shares to creditors, while equity pledge means that shareholders pledge their shares to creditors. In the equity pledge, the creditor obtains the equity and enjoys the rights and obligations of shareholders; In the equity pledge, the creditor obtains the possession of the stock, but does not enjoy the shareholder rights such as voting rights;

3. Different purposes: the purpose of equity pledge is to protect the interests of creditors, so that when the borrower fails to repay the loan on time, he can recover his creditor's rights through equity transfer; The purpose of equity pledge is to obtain financing, so as to obtain the income of stock price difference when the stock price rises, or to recover the financing principal by selling shares when the stock price falls;

4. Different transaction methods: Equity pledge is a dual way of pledge and transfer, and creditors need to pay a certain share transfer fee in the transaction; Equity pledge is a way of pledge and pledge cancellation, and creditors need to pay a certain amount of stock pledge interest and pledge cancellation fee in the transaction;

5 Different legal constraints: Equity pledge and equity pledge are subject to different legal constraints under different legal frameworks. In China, the pledge of equity is regulated by the Company Law and other laws and regulations, and the pledge of equity is regulated by the Securities Law and the Company Law. Therefore, when undertaking equity pledge or equity pledge, it is necessary to abide by the corresponding laws and regulations to ensure the legitimacy and effectiveness of the transaction.

The information required for equity pledge is as follows:

1. Application for equity pledge loan;

2. The financial statements of the borrower of the pledged loan at the end of last quarter;

3. The assets evaluation report of the equity issuing company in the latest fiscal year;

4. Proof that the equity issuing company agrees to pledge the loan.

In a word, with the active social capital market in China, the number of companies established in China is also increasing. At this time, we should pay attention to the relevant capital planning and enterprise management when setting up a company.

Legal basis:

Article 425th of the Civil Code of People's Republic of China (PRC)

In order to guarantee the performance of the debt, if the debtor or a third party gives his movable property to the creditor for possession, if the debtor fails to perform the due debt or the parties agree to realize the pledge, the creditor has the right to be paid in priority for the movable property.

The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.