repurchase agreement

American  

noun

1. 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.

2. 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. RP

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repurchase agreement British  

noun

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

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Etymology

Origin of repurchase agreement

First recorded in 1920–25

Example Sentences

The company said it plans to buy back $50 million worth of stock as part of an accelerated share repurchase agreement later this month.

From The Wall Street Journal • Jun. 2, 2026

Pinterest said it expects to use the proceeds from the investment to repurchase shares of its common stock through a $1 billion accelerated share repurchase agreement.

From Barron's • Mar. 3, 2026

Press reports indicate that U.S. banks might provide some $5 billion through a repurchase agreement to help Argentina meet interest and principal payments due in January.

From The Wall Street Journal • Nov. 30, 2025

Big players posted them as collateral for short-term loans in what’s known as the “repo” market, short for repurchase agreement.

From New York Times • Dec. 10, 2021

That is in contrast to the New York Fed's overnight repurchase agreement facility, which gives firms a place to park cash overnight in exchange for a return.

From Reuters • Oct. 14, 2021