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

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

In 2014, for example, it experienced wild swings known as a "flash crash," followed in 2019 by disruptions in the Treasury repurchase agreement market.

From Reuters • Sep. 12, 2022

But the Fed has been raising other interest rates as well, including one with a dismal name: the reverse repurchase agreement, a.k.a. the reverse repo rate.

From New York Times • Jun. 10, 2022

At the conclusion of its two-day policy meeting, the Fed also announced the establishment of two standing repurchase agreement facilities to serve as backstops in the markets.

From Washington Post • Jul. 28, 2021