According to the dictionary, pawn means: "to deposit as security, as for money borrowed, esp. With a pawnbroker".
A pawnbroker is a person who receives items, which could be anything from jewelry to furniture to musical instruments to electrical goods, in return for cash. An agreement will be made between the pawnbroker and the customer as to how long the pawnbroker will keep the item before they sell it. They may keep it for a few days or a few weeks and within this time the customer has the opportunity to return to the pawnbroker to buy back their item for a slightly higher price. If the customer cannot return within the agreed amount of time, the pawnbroker will put the item for sale and a new customer is free to buy the item.
A woman may not be able to afford to pay her rent for a month so she takes her watch to the pawnbroker who gives her $100 and two weeks to buy it back. This is called 'pawning an object'.The woman uses the money to pay her rent and does some overtime at work so that in two weeks' time she has some extra cash so she can afford to buy her watch back.
Many people find that pawning their objects is a more suitable option than taking a loan because they may not qualify for a loan and it also gives them the option to never pay it back. If the woman could not get any extra shifts at work she would simply have to accept that she cannot buy her watch back. This may be sad but she would not be in any debt and would not have to pay interest on a loan she cannot afford.
Pawnbrokers will usually own a pawnshop where customers can bring in their items that they wish to pawn. Pawnshops can often be full of interesting and unusual objects that are sold at good prices.
