A pawnbroker offers monetary loans in exchange for an item of value to the given pawn broker. Personal finance is the application of the principles of Finance to the monetary decisions of an individual or family unit Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating Debt is that which is owed usually referencing Assets owed but the term can cover other obligations A credit card is part of a system of Payments named after the small Plastic card issued to users of the system A credit union is a Cooperative Financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift providing credit A debit card (also known as a bank card) is a plastic card which provides an alternative payment method to Cash when making purchases Debt consolidation entails taking out one Loan to pay off many others A loan is a type of Debt. This article focuses exclusively on monetary loans although in practice any material object might be lent A moneylender offers small Personal loans at high rates of interest, usually higher rates than the market rate charged on Credit cards or on A mortgage is the pledging of a property to a Lender as a security for a Mortgage loan. A contract of employment is a category of Contract used in Labour law to attribute right and responsibilities between parties to a bargain A salary is a form of periodic payment from an Employer to an Employee, which may be specified in an Employment contract. A wage is a compensation workers receive in exchange for their labor. An employee stock option is a Call option on the common stock of a company issued as a form of non-cash compensation. Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or Retirement is the point where a person stops employment completely A retirement plan is an arrangement to provide people with an income or Pension, during Retirement, when they are no longer earning a steady income from employment An Individual Retirement Account (or IRA) is a Retirement plan account that provides some Tax advantages for Retirement savings in the United A pension is a steady income given to a person upon Retirement, typically in the form of a guaranteed annuity. Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old A business plan is a formal statement of a set of business goals the reasons why they are believed attainable and the plan for reaching those goals A corporate action is an event initiated by a Public company that affects the securities ( Equity or Debt) issued by the company A financial planner or personal financial planner is a practicing professional who helps people deal with various personal financial issues through proper planning which includes A financial adviser is a professional who renders investment advice and Financial planning services to individuals and businesses Estate planning is the process of accumulating and disposing of an estate to maximize the goals of the estate owner The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated In Economics, a financial market is a mechanism that allows people to easily buy and sell ( Trade) financial Securities (such as stocks and bonds There are two basic financial market participant categories Investor vs Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Personal finance is the application of the principles of Finance to the monetary decisions of an individual or family unit Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Financial regulations are a form of Regulation or supervision which subjects Financial institutions to certain requirements restrictions and guidelines aiming to The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral. Latin ( lingua Latīna, laˈtiːna is an Italic language, historically spoken in Latium and Ancient Rome. In lending agreements collateral is a borrower's asset that is Forfeited to the lender if the borrower is insolvent—that is unable to pay back the principal and interest on
Contents |
How the pawning process works
Within a certain contractual period of time, the pawner of an item may purchase it back for the amount of the loan plus some agreed upon fee. If the time elapses without payment, the pawnbroker is allowed to sell the pledged item to recoup the amount of the loan, which may have only been a fraction of its actual market value. Pawnbrokers often have a large number of formerly pawned objects for sale at their place of business, called a pawnshop, whereby they may recoup money that had been loaned out on an item subsequently forfeited by a pawn customer.
Pawnbrokers can also purchase an item outright for cash with no repayment expected; these sometimes need to be held for up to 30 days by law before they can be offered for sale. Cash usually refers to Money in the form of Currency, such as Banknotes and Coins In Bookkeeping and Finance, Because of the risk to the pawnbroker of receiving stolen property, and the interests of the community in not allowing a legitimate businessman to act as a fence, laws to protect both these parties exist in some jurisdictions in the United States through the means of a hold placed on an item purchased by a pawnbroker. In law enforcement a fence is an individual who knowingly buys stolen property for later resale in a (usually legitimate market The United States of America —commonly referred to as the If a hold law is in effect, it will last up to approximately 30 days, depending on location. Such regulation is necessarily imperfect. Unscrupulous pawnbrokers buy goods from strangers with few questions, or turn a blind eye to certain customers, despite state laws in the United States that require a state issued ID card, Social Security number and physical description of a customer. Some local governments in the United States require a picture or thumbprint to be taken of the pawn customer. Though many people believe that pawn shops are filled with stolen items studies have shown that it is less than 1/10th of 1% (according to the National Pawn Brokers Association) and though some claim that the nature of the business necessitates that some of the items will be stolen goods--many stolen items are just too common or too difficult for the authorities or even theft victims to identify and prove former ownership.
Items of value
Pawnbrokers are often willing to take in many types of items including jewelry, electronics, musical instruments, firearms, vehicles and tools. Jewellery (also spelled jewelry, see spelling differences) is a personal Ornament, such as a necklace ring or bracelet made from Gemstones Electronics refers to the flow of charge (moving Electrons through Nonmetal conductors (mainly Semiconductors, whereas electrical A musical instrument is a device constructed or modified for the purpose of making Music. A firearm is a Tool that projects either single or multiple Projectiles at high velocity through a controlled explosion Vehicles, derived from the Latin word vehiculum, are non-living Means of transport. A broader definition of a tool is an entity used to interface between two or more domains that facilitates more effective action of one domain upon the other Gold is considered an item that is never to be turned away, because even if the item is of relatively low value it can still be sold in bulk to a smelter as scrap gold. Gold (ˈɡoʊld is a Chemical element with the symbol Au (from its Latin name aurum) and Atomic number 79 Chemical reduction, or smelting, is a form of Extractive metallurgy.
When an item is pawned the pawn broker will typically loan out however much money the customer needs, though considerably less than the resale value of the collateral. Of course no pawnbroker is going to loan more than the value of an item being pledged and in most all cases it will be a fraction of the value. This is so the pawnbroker can make money on the item in the event the customer doesn't come back for the item and the pawnbroker must resell it.
The required time between forfeiture and sale of an item is usually 30 days plus a grace period that may be as long as three months. For some items, such as electronics that drop in value as new and improved models come out, pawnbrokers must offer a lower loan to be certain that they can recover the costs associated with the loan while making a profit. Other items, such as gold, must be valued in keeping with the daily fluctuations in market value.
History
Ancient world
In the west, pawnbroking existed in the ancient Greek and Roman Empires. This history is partially outdated for developments in the 20th century To trace the history of Pawnbroking, we must go back to the earliest ages Most contemporary Western law on the subject is derived from the Roman jurisprudence. As the empire spread its culture, pawnbroking went with it.
Likewise, in the East, the business model existed in China 3000 years ago no different than today, through the ages strictly regulated by Imperial or other authorities.
Middle Ages
In spite of early Roman Catholic Church prohibitions against charging interest on loans, there is some evidence that the Franciscans were permitted to begin the practice as an aid to the poor. Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets A loan is a type of Debt. This article focuses exclusively on monetary loans although in practice any material object might be lent The term Franciscan is commonly used to refer to members of Catholic
In England the pawnshop came in with William the Conqueror, with an Italian name, Lombard. William I of England ( 1027 His reign which brought Norman culture to England had an enormous impact on the subsequent course of England in the Middle Ages In 1338 Edward III pawned his jewels to the Lombards to raise money for his war with France. King Henry V did much the same in 1415.
The Lombards were not a popular class and Henry VII Tudor harried them a good deal. In the very first year of James I Stuart an Act against Brokers was passed and remained on the statute-book until Queen Victoria had been on the throne thirty-five years. James I ( December 10, 1394 &ndash February 21, 1437) was nominal King of Scots from April 4, 1406, and Victoria (Alexandrina Victoria 24 May 1819 – 22 January 1901 was from 20 June 1837 the Queen of the United Kingdom of Great Britain and Ireland It was aimed at the many counterfeit brokers in London. This type of broker was evidently regarded as a fence. It is also known the queen Isabel of Spain pawned her jewelry in order to send Christopher Columbus out to what he believed was going to be western India.
Modern time
The Chinese conditions are decidedly favorable to a borrower. He may, as a rule, take three years to redeem his property, and he cannot be charged a higher rate than 3% per annum.
In the United Kingdom typical high street pawn interest rates vary between 5% to 12% gross per month and the average annual equivalent rate is 85%. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located High Street, or the High Street, is a Metonym for the generic name (and frequently the official name of the primary Business street Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets The effective interest rate, effective annual interest rate, Annual Equivalent Rate (AER or simply effective rate is the Interest rate on a [1]
The pawnbroker in the United States is generally subject to considerable legal restriction. The United States of America —commonly referred to as the Each state has its own regulations regarding pawnbrokers, generally regulating the amount of interest that is allowed to be charged on a collateral loan. In Massachusetts, a 2007 Boston Globe investigation suggested 10% monthly interest was not uncommon. The Commonwealth of Massachusetts ( is a state located in the New England region of the northeastern United States. The Boston Globe (and Boston Sunday Globe) is the most widely circulated daily Newspaper in Boston and in New England, [2] In the state of New York, interest at pawnshops is limited to 4% per month. New York ( is a state in the Mid-Atlantic and Northeastern regions of the United States and is the nation's third most populous [3]
Symbol
The pawnbroker's symbol is three spheres suspended from a bar. The three sphere symbol is attributed to the Medici Family of Florence, Italy, owing to its symbolic meaning of Lombard. Florence ( Italian: Firenze Florentia and Fiorenza) is the Capital City of the Italian region of Tuscany Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest This refers to the Italian province of Lombardy, where pawn shop banking originated under the name of Lombard banking. Lombardy (Lombardia Latin: Langobardia, Western Lombard: Lumbardìa, Eastern Lombard: Lombardia) is one of the Lombard banking refers to the historical use of the term 'Lombard' for a Pawn shop in the Middle Ages a type of banking that originated with the prosperous northern Italian The three golden spheres were originally the symbol which medieval Lombard merchants hung in front of their houses, and not the arms of the Medici family. It has been conjectured that the golden spheres were originally three flat yellow effigies of byzants, or gold coins, laid heraldically upon a sable field, but that they were converted into spheres to better attract attention. Bezant is a Medieval name for a Gold coin. Gold coins were not minted in early medieval Western Europe, Silver and Bronze being the
Most European towns called the pawn shop the "Lombard". The House of Lombard was a banking family in medieval London, England. The Lombards ( Latin Langobardi, whence the alternative names Langobards and Longobards) were a Germanic people originally from London ( ˈlʌndən is the capital and largest urban area in the United Kingdom. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland According to legend, a Medici employed by Charles the Great slew a giant using three bags of rocks. Charlemagne (ˈʃɑrlɨmeɪn Carolus Magnus or Karolus Magnus meaning Charles the Great) (747 – 28 January 814 was King of the Franks from 768 to his The three ball symbol became the family crest. Since the Medicis were so successful in the financial, banking, and moneylending industries, other families also adopted the symbol. Throughout the Middle Ages, coats of arms bore three balls, orbs, plates, discs, coins and more as symbols of monetary success. Heraldry in its most general sense encompasses all matters relating to the duties and responsibilities of officers of arms. Pawnbrokers (and their detractors) joke that the three balls mean "Two to one, you won't get your stuff back".
Saint Nicholas is the patron saint of pawnbrokers. Saint Nicholas (Άγιος Νικόλαος, Agios Nikolaos, "victory of the people" is the common name for Nicholas of Myra, a Christian Saint The patron saint of a particular group of people is a Saint who would protect and 'love' the group and its members The symbol has also been attributed to the story of Nicholas and the three bags of gold.
Pawn shops in Asia
In Hong Kong it follows the Chinese tradition, and the counter of the shop is typically higher than the average person for security. Hong Kong ( officially the Hong Kong Special Administrative Region, is a territory located on China 's south coast on the Pearl River Delta, and borders A customer can only hold up his hand to offer belongings and there is a wooden screen between the door and the counter for customers' privacy. The symbol of a pawn shop in Hong Kong is a bat (the animal) holding a coin (Cantonese: fuk shu tiu kam chin; in Chinese letters: 蝠鼠吊金錢). main - title Coin keywords numismatics coin review The bat signifies fortune and the coin signifies benefits.
In Japan, the usual symbol for a pawn shop is a circled digit seven, as "shichi", the Japanese word for seven, sounds similar to the word for "pawn" (質). For a topic outline on this subject see List of basic Japan topics.
In India, the Marwari Jain community pioneered the pawnbroking business but today this phenomenon will be changed; this work is done by many agents called "saudagar". India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country Jainism, traditionally known as Jain Dharma / Shraman Dharma (जैन धर्म is an ancient religion of India. They play role as a freely not in shop style. They reach needy people's homes & motivate them to involving in system. It is a general practice to run a pawn shop as part of jewelry store. Gold, silver, and diamonds are especially accepted as collateral.
Pawnbroking is also a traditional trade in Thailand. The Kingdom of Thailand (ˈtaɪlænd ราชอาณาจักรไทย, râːtɕʰa-ʔaːnaːtɕɑ̀k-tʰɑj
See also
- Consignment shop
- Lombard banking
- Cash America, a large United States chain of pawnshops
Sources and external links
- This article incorporates text from the Encyclopædia Britannica Eleventh Edition, a publication now in the public domain. Consignment is the act of consigning, which is placing a person or thing in the hand of another but retaining ownership until the goods are sold or person is transferred Lombard banking refers to the historical use of the term 'Lombard' for a Pawn shop in the Middle Ages a type of banking that originated with the prosperous northern Italian The United States of America —commonly referred to as the The Encyclopædia Britannica Eleventh Edition (1910–1911 is a 29-volume reference work that marked the beginning of the Encyclopædia Britannica The public domain is a range of abstract materials &ndash commonly referred to as Intellectual property &ndash which are not owned or controlled by anyone
- Roath's Pawn Shop: History of Pawnbroking.
- Online Directory for US Pawn Shops.
References
- ^ Pawn Shop Rip-off. www. thisismoney. co. uk (2004-11-12). "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Events 764 - Tibetan troops occupy Chang'an, the capital of the Chinese Tang Dynasty, for fifteen days Retrieved on 2007-01-02. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 366 - The Alamanni cross the frozen Rhine River in large numbers invading the Roman Empire.
- ^ Roberson, Donna (2007-04-30). Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 313 - Roman emperor Licinius unifies the entire Eastern Roman Empire under his rule State fails to curb usurious pawnshop rates: Little oversight as poor bear brunt. Boston Globe.
- ^ Fernandez, Manny (September 14, 2007). Cash to Get By Is Still Pawnshop’s Stock in Trade. New York Times. Retrieved on 2007-09-14. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 81 - Domitian becomes Emperor of the Roman Empire upon the death of his brother Titus.
Dapyx Software network: MP3 Explorer | Ebook Manager | Zenithic