repurchase agreement


noun

a contract between a dealer, as a bank, and an investor, whereby the investor purchases securities with the promise that they will be bought back by the dealer on a designated date, for which the investor receives a fixed return.
a contract between a buyer and a seller whereby the seller agrees to repurchase the item sold after a specified length of time or amount of use. Abbreviation: RP
Also called repo.

Origin of repurchase agreement

First recorded in 1920–25

Words nearby repurchase agreement

British Dictionary definitions for repurchase agreement

repurchase agreement

noun

an agreement in which a security or asset is sold and later repurchased at an agreed price to raise ready money Sometimes shortened to: repo